Its active customer base grew by 8% this year. Additionally, its loyalty program called Plus almost tripled its membership.
Zalando is one of the biggest online stores in Germany and has also grown into an e-commerce giant worldwide.
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This week, it released its financial results for Q3 2022. It now has a total of 50.2 million active customers, mostly thanks to its loyalty program. On average, each active user placed 5.2 orders during the year.
Even when Zalando news is positive, the brand is aware of the upcoming difficulties.
“I am proud that we are reaching 50 million active customers and of our progress in deepening our relationships with them”, said Robert Gentz, co-CEO at Zalando. “We will continue to carefully navigate through these turbulent times, pushing forward with measures to improve profitability as well as strategic initiatives that inspire and engage with our customers.”
Additionally, the company’s GMV - Gross Merchandise Volumen - in Q3 this year grew 7.1% when compared on a year-on-year basis.
It reached a total GMV of 3.28 billion euros. It generated a revenue of 2.35 billion euros, which was a growth of 2.9 percent when compared to last year.
Zalando’s EBIT - Earnings Before Interest and Taxes - has also improved, to 13.5 million euros, a growth of 37.8% year-on-year.
“The introduction of a minimum order value has encouraged customers to increase the size of their basket or pay the delivery fee. As a result, orders below the minimum order value are now profitable”, stated the company in its press release.
Despite this growth, the company is still operating in red numbers. Its net income is a loss of 35.4 million euros. In the same period last year, its net income reached a loss of 8.4 million euros.
The company indicates that this can be related to low consumer confidence and inflation. “Although it’s not crystal clear how consumer spending will play out in the final quarter, we are working hard to execute and deliver on our strategic priorities and financial outlook”, said CFO Sandra Dembeck.
🔥You can read the entire Zalando report directly from their website🔥
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