Zalando at a glance
Key figures
|
Q2/24 |
Q2/23 |
Change |
H1/24 |
H1/23 |
Change |
||||||||
|
Key performance indicators |
|||||||||||||
|
Gross merchandise volume (GMV*) (in m EUR) |
3,842.2 |
3,736.4 |
2.8% |
7,133.2 |
6,963.3 |
2.4% |
|||||||
|
Revenue (in m EUR) |
2,643.2 |
2,556.3 |
3.4% |
4,884.6 |
4,811.9 |
1.5% |
|||||||
|
Adjusted EBIT (in m EUR)** |
171.6 |
144.8 |
18.5% |
199.9 |
144.1 |
38.7% |
|||||||
|
Adjusted EBIT margin (as %) |
6.5 |
5.7 |
0.8pp |
4.1 |
3.0 |
1.1pp |
|||||||
|
EBIT (in m EUR) |
154.7 |
86.8 |
78.3% |
155.5 |
60.6 |
>100% |
|||||||
|
EBIT margin (as %) |
5.9 |
3.4 |
2.5pp |
3.2 |
1.3 |
1.9pp |
|||||||
|
Capex (in m EUR) |
-40.6 |
-39.2 |
3.6% |
-100.1 |
-76.9 |
30.2% |
|||||||
|
Active customers (LTM***) (in millions) |
49.8 |
50.5 |
-1.3% |
49.8 |
50.5 |
-1.3% |
|||||||
|
Number of orders (in millions) |
63.4 |
63.2 |
0.3% |
118.6 |
119.9 |
-1.1% |
|||||||
|
Average GMV per active customer (LTM***) (in EUR) |
297.2 |
293.5 |
1.3% |
297.2 |
293.5 |
1.3% |
|||||||
|
Average orders per active customer (LTM***) |
4.9 |
5.0 |
-3.2% |
4.9 |
5.0 |
-3.2% |
|||||||
|
Average basket size (LTM***) (in EUR) |
60.8 |
58.1 |
4.6% |
60.8 |
58.1 |
4.6% |
|||||||
|
Other key figures |
|||||||||||||
|
Net working capital (in m EUR)**** |
-488.2 |
-441.8 |
-10.5% |
-488.2 |
-441.8 |
-10.5% |
|||||||
|
Equity ratio (as % of total assets)**** |
31.1 |
30.5 |
0.6pp |
31.1 |
30.5 |
0.6pp |
|||||||
|
Cash flow from operating activities (in m EUR) |
481.7 |
371.1 |
29.8% |
379.7 |
204.4 |
85.8% |
|||||||
|
Cash flow from investing activities (in m EUR) |
-12.6 |
-45.3 |
72.1% |
-95.2 |
-83.5 |
-13.9% |
|||||||
|
Free cash flow (in m EUR) |
441.1 |
330.7 |
33.4% |
279.6 |
125.8 |
>100% |
|||||||
|
Cash and cash equivalents (in m EUR)**** |
2,566.2 |
2,533.2 |
1.3% |
2,566.2 |
2,533.2 |
1.3% |
|||||||
|
Average number of employees**** |
15,269 |
15,793 |
-3.3% |
15,269 |
15,793 |
-3.3% |
|||||||
|
Basic earnings per share (in EUR) |
0.37 |
0.22 |
69.2% |
0.33 |
0.07 |
>100% |
|||||||
|
Diluted earnings per share (in EUR) |
0.37 |
0.22 |
69.0% |
0.33 |
0.07 |
>100% |
|||||||
|
pp = percentage points |
|||||||||||||
|
For an explanation of the performance indicators please refer to the glossary. |
|||||||||||||
|
Rounding differences may arise in the percentages and numbers shown in this interim statement. |
|||||||||||||
|
*) |
GMV (gross merchandise volume) is defined as the value of all merchandise sold to customers after cancellations and returns and including VAT, dynamically reported. It neither includes |
||||||||||||
|
B2B revenues (e.g. ZEOS services) nor other B2C revenues (e.g. Partner business commissions, Zalando Marketing Services and service charges like express delivery fees); |
|||||||||||||
|
these are included in revenue only. GMV is recorded based on the time of the customer order. |
|||||||||||||
|
**) |
Adjusted EBIT is defined as EBIT before equity-settledshare-based payment expenses, restructuring costs, acquisition-related expenses and other significant non-operatingone-time effects. |
||||||||||||
|
***) |
Calculated based on the last 12 months (LTM). |
****) As of 30 Jun, 2024 and 31 Dec, 2023, respectively
|
Zalando SE |
HALF-YEAR REPORT 2024 |
Content
Interim group management report
|
1.1 |
Information on our group |
4 |
|
1.2 |
Report on economic position |
4 |
|
1.3 |
Risk and opportunity report |
14 |
|
1.4 |
Outlook |
15 |
Interim consolidated financial statements
|
2.1 |
Consolidated statement of comprehensive income |
18 |
|
2.2 |
Consolidated statement of financial position |
19 |
|
2.3 |
Consolidated statement of changes in equity |
21 |
|
2.4 |
Consolidated statement of cash flows |
23 |
|
2.5 |
Condensed notes to the interim consolidated financial statements |
24 |
|
2.6 |
Responsibility statement by the management board |
34 |
|
2.7 |
Review report |
35 |
Service
|
3.1 |
Glossary |
38 |
|
3.2 |
Financial calendar 2024 |
40 |
|
3.3 |
Imprint |
40 |
|
Zalando SE |
HALF-YEAR REPORT 2024 |
Interim group management report
|
Zalando SE |
HALF-YEAR REPORT 2024 |
|
1 Report on economic position |
2 Selected financial information |
3 Service |
4 |
1.1 Information on our group
The statements made in the annual report 2023 on our business model, group structure and strategy of the group, combined non-financial declaration, management system and research and development in our group remain valid at the time this interim report was issued for publication.
In line with our updated strategy to build the leading pan-European fashion and lifestyle e-commerce ecosystem, we have expanded our capabilities around two sets of customers: B2C (business-to-consumer) and B2B (business-to-business). We have shifted our steering and decision-making from a sales channel view (fashion store and offprice) to a distinction between the B2C and B2B segments. From Q1 2024 our external reporting is adjusted accordingly to reflect these two operating segments.1
As a result, co-founder David Schneider will focus on building partner relationships across Zalando's B2C and B2B ambitions and continue positioning the Zalando brand. He therefore will hand over his co-CEO role to David Schröder. David Schröder will focus on building the B2B operating system that enables e-commerce across Europe on and off the Zalando platform and further developing our unique capabilities and infrastructure. Co-founder Robert Gentz will continue in his role as co-CEO and focus on expanding our B2C growth vector to make Zalando the go-to destination for quality fashion, lifestyle shopping and inspiration. These changes will come into effect as of 1 September 2024.
1.2 Report on economic position
1.2.1 Macroeconomic and sector-specific environment in H1 2024
The global economy is showing signs of improvement with modest growth and a faster-than- expected reduction in inflation boosting private sector confidence. Labour market imbalances are easing, real incomes are rising and trade growth is positive, although outcomes vary across countries, with Europe and low-income nations lagging behind the US and major emerging markets. Risks remain, particularly from geopolitical tensions, slower-than-expected reductions in key interest rates, and potential financial vulnerabilities, while stronger demand growth and labour force expansion could accelerate a reduction in inflation.2
Economic activity in Europe recovered in the first quarter of 2024, growing by 0.3% in both the euro area and the EU, and is expected to strengthen further during 2024, supported by rising household incomes, external demand and some recovery in business investment.3 The EU consumer confidence indicator has continued to improve, reaching -12.9 at the end of June.4
|
1 |
For further information please see our annual report 2023 in sections 2.1.2 Group structure and 2.1.3 Group strategy. |
|
2 |
|
|
OECD Economic Outlook, May 2024 |
|
|
3 |
|
|
Eurosystem staff macroeconomic projections for the euro area, June 2024 |
|
|
4 |
|
|
European Commission, EU, 27 June 2024 |
|
|
Zalando SE |
HALF-YEAR REPORT 2024 |
|
1 Report on economic position |
2 Selected financial information |
3 Service |
5 |
The German economy is on the road to recovery. After a decline in GDP at the end of 2023, GDP grew by 0.2% in the first quarter of 2024 and is expected to grow slightly again in the second quarter, albeit with a marginally stronger underlying economic trend than in the previous quarter. Despite some challenges, positive indicators are emerging. Industrial production is rising, new orders are stabilising and external demand is improving from a low base. The services sector continues to recover, supported by increased private consumption driven by rising wages and improved consumer sentiment. Survey indicators, such as the ifo Institute's business climate index, suggest an improved business environment and better expectations for the next six months.5
In the first half of 2024, German brick-and-mortar fashion sales remained flat, with a 3% decline in sales in the second quarter of the year.6 The German e-commerce sales in the clothing segment (apparel & shoes) increased by 1.1% in the first half of 2024 to 8.6bn EUR, including VAT, while growing 2.9% in the second quarter of 2024.7
-
Deutsche Bundesbank: Monthly Report, June 2024
6 TextilWirtschaft revenue statistics, July 2024
- BEVH press releases, April and July 2024
|
Zalando SE |
HALF-YEAR REPORT 2024 |
|
1 Report on economic position |
2 Selected financial information |
3 Service |
6 |
1.2.2 Financial performance of the group
Condensed consolidated income statement H1/24
|
As % of |
As % of |
|||||||||
|
in m EUR |
H1/24 |
revenue |
H1/23 |
revenue |
Change |
|||||
|
GMV |
7,133.2 |
146.0% |
6,963.3 |
144.7% |
1.3pp |
|||||
|
Revenue |
4,884.6 |
100.0% |
4,811.9 |
100.0% |
0.0pp |
|||||
|
Cost of sales |
-2,928.6 |
-60.0% |
-2,919.9 |
-60.7% |
0.7pp |
|||||
|
Gross profit |
1,956.0 |
40.0% |
1,892.0 |
39.3% |
0.7pp |
|||||
|
Fulfilment costs |
-1,134.0 |
-23.2% |
-1,219.4 |
-25.3% |
2.1pp |
|||||
|
Marketing costs |
-420.4 |
-8.6% |
-339.0 |
-7.0% |
-1.6pp |
|||||
|
Administrative expenses |
-249.6 |
-5.1% |
-241.4 |
-5.0% |
-0.1pp |
|||||
|
Other operating income |
7.7 |
0.2% |
13.4 |
0.3% |
-0.1pp |
|||||
|
Other operating expenses |
-4.3 |
-0.1% |
-45.0 |
-0.9% |
0.8pp |
|||||
|
EBIT |
155.5 |
3.2% |
60.6 |
1.3% |
1.9pp |
|||||
|
Share-based payments |
44.7 |
0.9% |
41.3 |
0.9% |
0.1pp |
|||||
|
Acquisition-related expenses |
10.3 |
0.2% |
9.2 |
0.2% |
0.0pp |
|||||
|
One-time effects |
-10.6 |
-0.2% |
0.0 |
0.0% |
-0.2pp |
|||||
|
Restructuring costs |
0.0 |
0.0% |
33.0 |
0.7% |
-0.7pp |
|||||
|
Adjusted EBIT |
199.9 |
4.1% |
144.1 |
3.0% |
1.1pp |
|||||
Condensed consolidated income statement Q2/24
|
As % of |
As % of |
|||||||||
|
in m EUR |
Q2/24 |
revenue |
Q2/23 |
revenue |
Change |
|||||
|
GMV |
3,842.2 |
145.4% |
3,736.4 |
146.2% |
-0.8pp |
|||||
|
Revenue |
2,643.2 |
100.0% |
2,556.3 |
100.0% |
0.0pp |
|||||
|
Cost of sales |
-1,544.0 |
-58.4% |
-1,518.8 |
-59.4% |
1.0pp |
|||||
|
Gross profit |
1,099.1 |
41.6% |
1,037.6 |
40.6% |
1.0pp |
|||||
|
Fulfilment costs |
-583.5 |
-22.1% |
-624.7 |
-24.4% |
2.4pp |
|||||
|
Marketing costs |
-237.3 |
-9.0% |
-175.0 |
-6.8% |
-2.1pp |
|||||
|
Administrative expenses |
-126.8 |
-4.8% |
-122.9 |
-4.8% |
0.0pp |
|||||
|
Other operating income |
2.4 |
0.1% |
8.0 |
0.3% |
-0.2pp |
|||||
|
Other operating expenses |
0.8 |
0.0% |
-36.2 |
-1.4% |
1.4pp |
|||||
|
EBIT |
154.7 |
5.9% |
86.8 |
3.4% |
2.5pp |
|||||
|
Share-based payments |
22.4 |
0.8% |
20.2 |
0.8% |
0.1pp |
|||||
|
Acquisition-related expenses |
5.0 |
0.2% |
4.8 |
0.2% |
0.0pp |
|||||
|
One-time effects |
-10.6 |
-0.4% |
0.0 |
0.0% |
-0.4pp |
|||||
|
Restructuring costs |
0.0 |
0.0% |
33.0 |
1.3% |
-1.3pp |
|||||
|
Adjusted EBIT |
171.6 |
6.5% |
144.8 |
5.7% |
0.8pp |
|||||
|
Zalando SE |
HALF-YEAR REPORT 2024 |
|
1 Report on economic position |
2 Selected financial information |
3 Service |
7 |
GMV by quarter (2022-2024)8
in m EUR
|
Q1 |
Q2 |
Q3 |
Q4 |
|||||||||||||||
|
2022 |
3,153 |
3,787 |
3,280 |
4,569 |
14,789 |
|||||||||||||
|
2023 |
3,227 |
3,736 |
3,210 |
4,461 |
14,635 |
|||||||||||||
|
2024 |
3,291 |
3,842 |
7,133 |
|||||||||||||||
|
0 |
2,500 |
5,000 |
7,500 |
10,000 |
12,500 |
15,000 |
Revenue by quarter (2022-2024)9
in m EUR
|
Q1 |
Q2 |
Q3 |
Q4 |
||||||||||||||||||
|
2022 |
2,205 |
2,623 |
2,349 |
3,168 |
10,345 |
||||||||||||||||
|
2023 |
2,256 |
2,556 |
2,275 |
3,056 |
10,143 |
||||||||||||||||
|
2024 |
2,241 |
2,643 |
4,885 |
||||||||||||||||||
|
0 |
2,500 |
5,000 |
7,500 |
10,000 |
12,500 |
15,000 |
H1 2024 GMV increased by 2.4% to 7,133.2m EUR (prior-year period: 6,963.3m EUR) driven by a timely start of the spring/summer season and successful demand activation across our lifestyle propositions, such as sports.
As of 30 June 2024, the number of active customers reached 49.8 million, compared to
50.5 million in the prior-year period, attributable to a decline in new customer acquisition. GMV per active customer increased by 1.3% to 297.2 EUR (prior-year period: 293.5 EUR) driven by a 4.6% rise in average basket size to 60.8 EUR (prior-year period: 58.1 EUR), which compensated for lower average orders per active customer of 4.9 at the end of Q2 2024 (prior-year period: 5.0). All KPIs were calculated on the basis of the last 12 months.
Revenue increased by 1.5% to 4,884.6m EUR (prior-year period: 4,811.9m EUR) on the back of a positive development in our retail business10, a continuously growing partner business and strong revenue growth of 11.8% in B2B. The difference between GMV and revenue development is inherent in our partner business model where selling prices are fully reflected
|
8 |
The statements on the quarterly development of GMV are unaudited. |
|
9 |
|
|
The statements on the quarterly development of revenue are unaudited. |
10 Formerly known as wholesale and offprice business
|
Zalando SE |
HALF-YEAR REPORT 2024 |
|
1 Report on economic position |
2 Selected financial information |
3 Service |
8 |
in the GMV metric, while revenue only includes the commission income on the selling price. Furthermore, revenue from our Zalando Marketing Services (ZMS) as well as from our B2B segment, including Zalando Fulfilment Solutions (ZFS) and our newly launched multi-channel offering, are considered in revenue but not in GMV.
Based on the improved gross profit margin and lower fulfilment costs, we generated an adjusted EBIT of 199.9m EUR in H1 2024 (prior-year period: 144.1m EUR). Adjustments comprised expenses for equity-settledshare-based payments of 44.7m EUR (prior-year period: 41.3m EUR) and acquisition-related expenses of 10.3m EUR (prior-year period:
9.2m EUR) in H1 2024 as well as one-time income effects of 10.6m EUR relating to the subletting of our warehouse in Bydgoszcz, Poland (prior-year period: 0.0m EUR). The adjusted EBIT margin improved to 4.1% (prior-year period: 3.0%).
Our gross margin increased by 0.7 percentage points to 40.0% in H1 2024 driven by a successful sell-through of our retail inventory and a growing partner business that comes with structurally higher gross profit margins. The partner business share amounted to 34.3% in the first half year of 2024 (prior-year period: 33.5%).
Compared to the prior-year period, fulfilment costs as a percentage of revenue decreased by 2.1 percentage points to 23.2%, attributed to favourable order economics among other things, reflected in a higher average basket size and cost reductions as well as the scaling of our ZEOS fulfilment business.
Marketing expenses rose to 420.4m EUR (prior-year period: 339.0m EUR), with the marketing cost ratio reaching 8.6% of revenue, an increase of 1.6 percentage points from the previous year. We strategically increased investments in performance and brand marketing to capitalise on the timely spring/summer season. Additionally, we launched several key campaigns to drive demand and enhance brand visibility, some of which highlighted the "Summer of Sports".
Administrative expenses amounted to 249.6m EUR (prior-year period: 241.4m EUR).
As a percentage of revenue, administrative expenses remained stable at 5.1% (prior-year period: 5.0%).
Other operating expenses decreased to 4.3m EUR (prior-year period: 45.0m EUR) primarily due to the reshaping programme in 2023 with one-off costs comprising expenses for severance and garden leave payments as well as consulting fees.
The improved financial result of -19.7m EUR (prior-year period: -29.0m EUR) is driven by higher interest income. Considering the financial result and the income taxes of -48.9m EUR in H1 2024 (prior-year period: -13.4m EUR), our net income improved to 86.9m EUR in
H1 2024 (prior-year period: 18.2m EUR).
|
Zalando SE |
HALF-YEAR REPORT 2024 |
|
1 Report on economic position |
2 Selected financial information |
3 Service |
9 |
1.2.3 Results by segment
Segment results of the group H1/24
|
Recon- |
Total |
|||||||||
|
in m EUR |
B2C |
B2B |
Total |
ciliation |
group |
|||||
|
GMV |
7,133.2 |
0.0 |
7,133.2 |
0.0 |
7,133.2 |
|||||
|
(prior year) |
(6,963.3) |
(0.0) |
(6,963.3) |
(0.0) |
(6,963.3) |
|||||
|
Revenue |
4,441.1 |
448.9 |
4,890.0 |
-5.4 |
4,884.6 |
|||||
|
(prior year) |
(4,415.1) |
(401.7) |
(4,816.8) |
(-4.9) |
(4,811.9) |
|||||
|
thereof intersegment revenue |
0.0 |
5.4 |
5.4 |
-5.4 |
0.0 |
|||||
|
(prior year) |
(0.0) |
(4.9) |
(4.9) |
(-4.9) |
(0.0) |
|||||
|
Adjusted EBIT |
188.1 |
12.6 |
200.8 |
-0.9 |
199.9 |
|||||
|
(prior year) |
(124.4) |
(19.7) |
(144.1) |
(0.0) |
(144.1) |
|||||
|
Adjusted EBIT margin (as %) |
4.2% |
2.8% |
4.1% |
- |
4.1% |
|||||
|
(prior year) |
(2.8%) |
(4.9%) |
(3.0%) |
- |
(3.0%) |
|||||
|
Share-based payments |
40.4 |
4.3 |
44.7 |
0.0 |
44.7 |
|||||
|
(prior year) |
(38.2) |
(3.1) |
(41.3) |
(0.0) |
(41.3) |
|||||
|
Acquisition-related expenses |
1.7 |
8.6 |
10.3 |
0.0 |
10.3 |
|||||
|
(prior year) |
(0.4) |
(8.8) |
(9.2) |
(0.0) |
(9.2) |
|||||
|
One-time effects |
-10.6 |
0.0 |
-10.6 |
0.0 |
-10.6 |
|||||
|
(prior year) |
(0.0) |
(0.0) |
(0.0) |
(0.0) |
(0.0) |
|||||
|
Restructuring costs |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|||||
|
(prior year) |
(32.3) |
(0.7) |
(33.0) |
(0.0) |
(33.0) |
|||||
|
EBIT |
156.6 |
-0.3 |
156.4 |
-0.9 |
155.5 |
|||||
|
(prior year) |
(53.5) |
(7.1) |
(60.6) |
(0.0) |
(60.6) |
|||||
|
Zalando SE |
HALF-YEAR REPORT 2024 |
Attachments
Disclaimer
Zalando SE published this content on 06 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 August 2024 05:02:00 UTC.
