Continuing cooperation with OpenAI
The Berlin online retailer Zalando recently reported accelerated revenue growth and an increased Profitability in the second quarter of 2024. At the same time, the company announced that it had invested in new AI-powered offerings. These are intended to make the shopping experience more enjoyable. The company also plans to continue investing in AI in the future.
Zalando also highlights that it has expanded its B2B business.
Confirmation of the forecast for 2024
With the two growth areas of Business-to-Consumer (B2C) and Business-to-Business (B2B), Zalando intends to build the leading e-commerce ecosystem for the European fashion and lifestyle market, according to its press release.
The currently presented results highlight the progress in implementing the updated strategy introduced in March, the retail group is convinced. Zalando also confirms its forecast for the current financial year. The online retailer expects gross merchandise volume (GMV) and revenue growth of between 0 and 5 percent in 2024 compared to the previous year.
For the second quarter of 2024, Zalando reports a GMV of €3.8 billion. This represents an increase of 2.8% compared to the same period last year. The company was able to increase revenue by 3.4% to €2.6 billion.
Adjusted earnings before interest and taxes (adjusted EBIT) reached €171.6 million in the second quarter. In the previous year's period, adjusted EBIT was €144.8 million.
So, according to the company, the EBIT margin rose by 0.8 percentage points to 6.5 percent of revenue. Zalando writes that the improvement in profitability is due to successful inventory management and lower logistics costs.
Investment in Technology
Furthermore, Zalando reports in its press release about Investments in its technological capabilities to drive the implementation of its ecosystem strategy.
The retail company states that it intends to collaborate even more intensively with OpenAI. According to Zalando, the two partners want to continue their cooperation and develop novel generative AI solutions for the fashion industry.
In addition, Zalando plans to expand its existing technology sites. The company is also planning a new site in Shenzhen, China. According to Zalando, this will be a complementary site where the company intends to leverage local expertise in social commerce.