Zalando, Europe’s leading online platform for fashion and lifestyle, has posted 23.6 per cent increase in its gross merchandise volume (GMV) to €8.2 billion in full fiscal 2019 compared to €6.6 billion in FY18. Revenue for FY19 that ended on December 31, 2019 grew 20.3 per cent to €6.5 billion compared to €5.4 billion in same period prior year.
“We look back at a very successful year. We achieved strong financial results in every single quarter,” Zalando CFO, David Schröder, said in a press release. “While delivering those results, we have made strong progress on our strategic agenda.”
The company has reported that in 2020, it will make several investments that underline its ambition to become the starting point for fashion. Firstly, the company will expand its premium segment to include luxury brands. In order to gain more market share in the €38 billion market for premium fashion, Zalando plans to double its premium and luxury assortment before year end 2023. The company has recently added Moschino Couture and Alberta Ferretti and will reportedly further expand the category by creating an inspiring and relevant experience for both customers and brand partners.
“Especially younger customers like to mix and match high-street fashion brands with sports and designer pieces. Premium has been our fastest-growing category in the past months, and we see a huge potential to build on that,” David Schneider, Zalando co-CEO, said.
The company will scale its pre-owned fashion pilot and launch “Pre-Owned” as a new category on the Zalando destination. The category launch supports Zalando’s ambition to build deep customer relationships by creating even more customer touch points and brings the company closer to the goal to become a sustainable fashion platform, as company reported.
In line with its growth strategy for 2023/24, Zalando expects to grow its GMV between 20-25 per cent and it expects revenues to grow between 15-20 per cent in FY20.
Fibre2Fashion News Desk (JL)