Online Retailer Zalando Grows Marketplace, Customer Numbers Fall

FILED - 03 March 2021, Berlin: The logo of online retailer Zalando is pictured on the Zalando Campus at Mercedes-Platz in Berlin. Photo: Jens Kalaene/ZB/dpa
FILED - 03 March 2021, Berlin: The logo of online retailer Zalando is pictured on the Zalando Campus at Mercedes-Platz in Berlin. Photo: Jens Kalaene/ZB/dpa
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Online Retailer Zalando Grows Marketplace, Customer Numbers Fall

FILED - 03 March 2021, Berlin: The logo of online retailer Zalando is pictured on the Zalando Campus at Mercedes-Platz in Berlin. Photo: Jens Kalaene/ZB/dpa
FILED - 03 March 2021, Berlin: The logo of online retailer Zalando is pictured on the Zalando Campus at Mercedes-Platz in Berlin. Photo: Jens Kalaene/ZB/dpa

Zalando swung to growth in the first quarter after three consecutive declines in gross merchandise volume, the online retailer said on Tuesday, but a decline in active customers and orders dampened the online retailer's results.
Quarterly gross merchandise volume (GMV) - a key revenue metric measuring the total value of all goods sold - rose 1.3% to 3.27 billion euros ($3.52 billion) from 3.23 billion in the year-earlier period, the German online fashion retailer said.
But analysts focused on a decline in active customers to 49.5 million from 51.2 million a year prior, and a 0.6% dip in quarterly revenue, Reuters reported.
As inflation has dented consumers' appetite to buy clothes, Zalando has sought new revenue drivers and started offering its platform and logistics network as a service to other retailers and brands. Revenue from this business-to-business (B2B) service was up 13% at 215 million euros.
"As we are executing our ecosystem strategy, we are excited by the positive response from customers and partners in the first quarter. We are returning to growth," said Dr. Sandra Dembeck, Zalando's chief financial officer.
Along with weaker demand, increased competition by fast fashion rivals such as Shein have weighed on Zalando's revenue. In response, Zalando is adding more premium brands to pursue a bigger share of customers' wallets, rather than trying to compete on price with Shein, which sells $5 T-shirts and $10 shoes.
Zalando said its average basket size increased to 60.4 euros, from 57.3 euros a year earlier.
Zalando has also developed a tool to predict sizing based on photos submitted by customers, and said it launched the service in Spain, France and Italy in the first quarter. The tool aims to ensure customers order items in the correct size, to reduce the amount of returns, a key threat to profit for Zalando and other online retailers.
Adjusted earnings before interest and tax (EBIT) swung to a profit of 28.3 million euros from a loss of 0.7 million euros a year earlier.
The company confirmed its outlook for GMV and revenue to grow as much as 5% in 2024, and adjusted EBIT to be 380 million to 450 million euros.



Issey Miyake’s Wind-inspired Show Takes Flight at Paris Fashion Week

This photo shows Issey Miyake at the National Art Center in Tokyo on March 15, 2016. (Kyodo News via AP)
This photo shows Issey Miyake at the National Art Center in Tokyo on March 15, 2016. (Kyodo News via AP)
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Issey Miyake’s Wind-inspired Show Takes Flight at Paris Fashion Week

This photo shows Issey Miyake at the National Art Center in Tokyo on March 15, 2016. (Kyodo News via AP)
This photo shows Issey Miyake at the National Art Center in Tokyo on March 15, 2016. (Kyodo News via AP)

Diaphanous origami-like sculptures that floated like spring seeds caught in the wind captured the essence of the subtle, rich, and exquisite display from Issey Miyake at Paris Fashion Week — one of the strongest in seasons.
The breathtaking menswear displays in the show “Up, Up, and Away” featured couture-like poetry: seemingly weightless textiles that billowed like parachutes or kites. The garments seemed ready for flight, said The Associated Press said.
In Mobilier National’s cobbled courtyard, the Homme Plissé show Thursday morning took inspiration from all things windy, transforming the elements into wearable art.
The collection was a testament to designer Satoshi Kondo’s deft innovations with fabric techniques.
A vivid blue coat cut a striking figure, with stiff, angular sleeves that contrasted beautifully with the softness of its pleats. This was not just a coat, but a sculptural piece that transformed with the air, reminiscent of Kondo’s signature romantic approach to silhouettes.
Kondo brought garments to life, like kites in the sky with voluminous silhouettes created by fastening and unfastening buttons. One standout piece, a pale blue hooded look, billowed like a parachute when the model walked across the cobbled courtyard, its back panels filling with air dramatically.
A beige T-shirt and waistcoat ensemble looked red carpet-ready with its chicly pleated, arrow-thin assorted tie.
Kondo's was a poetic masterclass in fusing complexity with simplicity, and when the collection entered to rousing applause, the Paris sun finally peeked out from between the clouds.