Zalando has beaten third-quarter sales expectations, citing strong growth in its business-to-business division.
It reported a 5.1 per cent rise in revenue to £2.8bn for the three months to September, ahead of the £2.63bn forecast by analysts surveyed by LSEG.
Gross merchandise volume increased 7.5 per cent to £3.79bn, while adjusted operating profit climbed 10.6 per cent to £88.9m, supported by lower fulfilment costs and synergies from its acquisition of ABOUT YOU.
Its adjusted operating margin edged up from 3.2 per cent to 3.4 per cent.
Zalando’s business-to-business division was a standout performer, with revenue jumping almost 28 per cent and adjusted operating profit more than doubling.
The division benefited from growing demand for its logistics and ecommerce services, including partnerships with Next and Marks & Spencer.
The group’s software business, SCAYLE, also secured a new deal with UK fashion retailer N Brown.
Meanwhile, its consumer business recorded revenue growth of 2.8 per cent, with active customers reaching a record 63.2 million, up 2.9 per cent year on year.
Zalando finance chief Anna Dimitrova said the integration of ABOUT YOU was progressing well, with the business continuing to deliver cost savings.
“Our shift to a platform business model is accelerating,” she said, pointing to double-digit growth across its partner and retail media operations.
Zalando steps up AI investment
Alongside its results, Zalando unveiled Zalando Extended, a new AI-powered service that will allow customers to purchase products from third-party online retailers without leaving its app.
The platform will initially launch in partnership with premium homeware retailer Westwing, with Zalando’s AI agent set to complete purchases on behalf of customers from 2027.
The development is designed to expand its product offering beyond items stocked directly by Zalando, while allowing third-party retailers to access its customer base without complex technical integrations.
It said more than 22 million unique users had interacted with its existing AI-powered shopping assistant so far this year.
Zalando is also accelerating its shift towards a marketplace model, with its partner business now accounting for 33.6 per cent of consumer GMV, compared with a longer-term target of 40 per cent to 50 per cent by 2028.
Retail media revenue increased nearly 18 per cent during the quarter.
The group maintained its full-year outlook, expecting GMV and revenue growth in the lower half of its previously announced 12 per cent to 17 per cent range.
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