At Zalando, Growth Slows as Lockdown Shopping Boom Ebbs

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At Zalando, Growth Slows as Lockdown Shopping Boom Ebbs
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Zalando is back to more normal levels of revenue growth and operating profit after phenomenal increases during the pandemic.

Zalando primarily measures its success via gross merchandise value, or GMV. This accounts for how much stock the platform has moved, as opposed to income from services like logistics and marketing. GMV is always higher than revenues.

At the same time, the company acknowledged that its costs were also rising. Zalando’s adjusted group EBIT – earnings before interest and taxes – were 9.8 million euros. This represents a margin of 0.4 percent of revenues. The number of active customers – that is, shoppers who use the platform at least once a year – rose 30.1 percent to 46.3 million. Before the pandemic, at the same time in 2019, Zalando only had 29.5 million active customers.

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