German online fashion retailer, Zalando, has announced that it expects its revenue for 2021 to surpass market projections. The company is predicting a 27% to 32% increase in its gross merchandise volume (GMV), which represents the sales made on its platform, to range between 13.6 billion euros ($16.22 billion) and 14.1 billion euros. This exceeds the average analyst expectation of a 25% growth. Zalando has already experienced a significant boost, reporting a 50% increase in GMV during the first quarter of the year.

While Zalando has not provided a specific reason for this positive performance, it is likely that the surge can be attributed to the growing demand for online shopping amidst the COVID-19 pandemic. With restrictions in place, more consumers are turning to e-commerce platforms to fulfill their shopping needs, resulting in increased sales for companies in the industry.

The e-commerce boom has not only benefitted Zalando but has also had a positive impact on other sectors, particularly logistics and warehousing. For instance, German logistics giant, Deutsche Post, recently raised its financial targets due to the heightened demand for delivery services. Similarly, UK warehousing specialist, Segro, has experienced a surge in demand for fulfillment centers from e-commerce companies.

In addition to its optimistic revenue projections, Zalando has also provided its outlook for adjusted earnings before interest and tax (EBIT) for 2021. The company anticipates earning between 350 million and 425 million euros, surpassing the previous year’s reported figure of 420.8 million euros. This outlook outperforms the analyst consensus of 361 million euros for 2021.

Overall, Zalando’s strong start to the year and optimistic revenue projections indicate a promising future for the company in 2021. With the continuous growth of the e-commerce industry and the increasing demand for online shopping, Zalando is well-positioned to capitalize on these trends and achieve even more success in the coming months.

Useful links:
1. Zalando Official Website
2. Statista: Online Shopping Statistics