Zalando, one of Europe’s largest online fashion retailers, has announced its Q3 results, demonstrating its success in effectively responding to the changing shopping habits of consumers this year. Like other e-commerce giants Asos and Boohoo, Zalando has witnessed a significant surge in its business. The company’s gross merchandise value (GMV) has soared by an impressive 29.9%, reaching €2.455 billion, while its group revenue experienced growth of 21.6%, amounting to €1.849 billion. Moreover, the adjusted group EBIT jumped from €6.3 million to €118.2 million, and the net income reached €58.5 million, recovering from a net loss of €13.6 million in Q3 of the previous year.

This remarkable achievement by Zalando can be attributed to the substantial increase in site visits, which rose by 26.8%. Notably, mobile visits accounted for 87.2% of total visits, a notable increase from 84.8% in the previous year. Additionally, the company’s active customer base expanded to 35.6 million customers, compared to 29.5 million in the previous year. Other key metrics also witnessed positive growth, such as order numbers, which increased by nearly 27%, and average orders per active customer, which rose by 3.3%. The average basket size also grew by 2.4%, reflecting the reluctance of consumers to visit physical stores during this quarter.

Zalando attributes its robust GMV growth to the changing patterns of consumer demand amid the ongoing COVID-19 pandemic. The digital shift and the success of Zalando Partner Program and Zalando Lounge have played a pivotal role in the company’s performance. Additionally, Zalando was able to release inventory valuation allowances of €35 million due to the strong sell-through in the spring/summer season, which had a positive impact on profitability.

Just last month, Zalando revised its outlook for the financial year 2020, anticipating further growth. The company now expects GMV to grow by 25-27%, revenues to increase by 20-22%, and an adjusted EBIT of €375-€425 million. CFO David Schröder highlighted the company’s preparedness for the second wave of the coronavirus, emphasizing that Zalando’s strategic priorities, including expanding the customer base, nurturing customer relationships, and driving the platform transition, will continue to drive growth beyond 2020.

Zalando’s strong performance in Q3 underscores the growing significance of online shopping in today’s retail landscape. As more and more consumers embrace digital platforms, companies like Zalando, Asos, and Boohoo are well-positioned to leverage this expanding market. By continuing to invest in and focus on their strategic initiatives, Zalando aims to maintain its growth trajectory and solidify its position as a leading player in the online fashion industry.

Please find below two useful links for more information:

– [Link 1: Zalando’s Q3 Results](https://www.zalando.com/press/en/corporate-news/zalando-records-accelerated-growth-in-q3-2020/)
– [Link 2: Zalando’s Investor Relations](https://corporate.zalando.com/en/investor-relations)