Mar 15, 2021
Zalando's outlook for 2021 revenue growth well above market expectations
Mar 15, 2021
German online fashion retailer Zalando said on Monday its revenue expectations for 2021 were significantly above market projections, following a strong start to the year.
Gross merchandise volume (GMV) - or sales made on its site by itself or by its partners - would likely increase 27%-32% to between 13.6 billion euros ($16.22 billion) and 14.1 billion euros in 2021, above average analyst expectations of 25% growth.
The gain in GMV was around 50% in the first quarter, marking an “an extraordinarily strong start to the year”, Zalando said.
While it did not provide a reason for the upswing, other e-commerce groups have benefited from people ordering goods online amid restrictions during the coronavirus pandemic.
The trend has helped German logistics giant Deutsche Post raise its medium-term financial targets last week, while UK warehousing specialist Segro has seen rising demand for fulfilment centres from e-commerce companies.
Zalando expects adjusted earnings before interest and tax of 350 million to 425 million euros this year, which compares with 420.8 million euros reported for last year and a 2021 analyst consensus of 361 million.
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