Zalando reports profit growth

The online fashion retailer Zalando was able to significantly increase its profit due to the Corona lockdowns. The company even raised its long-term growth target.

Zalando grew faster than originally planned last year. The company was able to increase its gross merchandise volume (GMV) by 30.4 percent to 10.7 billion euros in the 2020 financial year. According to the group's estimates, this is primarily due to an extraordinary increase in new customers as well as the strong development of the Connected Retail partner program. This program allows brick-and-mortar stores to sell their goods via the company's platform. An offer that, due to the Corona lockdowns, many retailers seem to have taken advantage of . In the fourth quarter of 2020, the partner program accounted for 24% of the GMV in the Zalando store, according to Zalando.

As a result, Zalando saw revenue growth of 23.1 percent to €8.0 billion in fiscal 2020. In the same period, the company generated an EBIT of 420.8 million euros. In light of the latest figures, Zalando also expects to continue to grow profitably and anticipates an adjusted EBIT of 350 to 425 million euros for the 2021 financial year. The company also plans to invest up to 400 million euros in logistics and technology.