PARIS – German e-commerce giant Zalando reported more than 20 percent growth in gross merchandise volume (GMV) and revenue in the second quarter, boosted mostly by its acquisition of former rival About You, although the headline figures masked much slower underlying growth as Europe‘s largest online fashion retailer narrowed its guidance for the second half of the year.
Group GMV rose 20.7 percent on a reported basis to 4.9 billion euros, while revenue increased 20.8 percent on a reported basis to 3.4 billion euros.
However, GMV grew just 4.4 percent and revenue 1.1 percent on a pro forma basis, which adjusts for the inclusion of About You in both reporting periods.
The company narrowed its full-year adjusted EBIT guidance and said it now expects GMV and revenue growth to come in at the lower end of its previously announced target range.
The company’s business-to-business division continued to outperform its core retail operations. B2B revenue rose 27.6 percent to 300 million euros, driven by growth in its Zeos logistics business and the inclusion of e-commerce software platform Scayle. The division generated adjusted EBIT of 40.7 million euros during the quarter.
