Zalando Q1 Revenues Slip Slightly, Disappointing Market Expectations

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Zalando Q1 2024 earnings are in: revenues slip slightly, below market expectations but indicating slow return to growth.

However the e-commerce giant’s Gross Merchandise Value, or GMV, which shows how much product it shifted and is seen as a key indicator, rose 1.3 percent., with plans to move to more of an “ecosystem” spanning consumer and business-to-business activities. Chief financial officer Sandra Dembeck said the Q1 results were the first signs that this plan was paying off.

Although the news was generally positive, especially compared to 2023, Zalando’s Q1 revenue results were slightly below market expectations. The number of orders also dropped 2.6 percent, going from 56.7 million to 55.2 milliion. Average orders per customer and the value of the average purchase, or basket, also decreased slightly.

Zalando’s EBIT — earnings before interest and taxes — was healthier in Q1 due to the company’s austerity measures, as it cut back on budget lines like logistics costs. It stood at 0.7 million euros in the first quarter. In Q1 the previous year, the company had been 26.2 million euros in the red.

 

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