Online fashion marketplace Zalando reported an 18.5% rise in its operating profit for the second quarter on Tuesday, helped by inventory management and lower order fulfilment costs, as its sports, designer and beauty segments drove growth.
Zalando has focused on higher-priced brands and the growing sportswear category, along with scaling up its partner business, as it faces competition from fast-fashion retailers with cheaper offerings such as Shein.
Quarterly adjusted earnings before interest and tax (EBIT) rose to 171.6 million euros ($187.9 million) from 144.8 million in the same period last year, Zalando said.
Its qross merchandise volume (GMV) - a key revenue metric measuring the total value of all goods sold - rose 2.8% on the year to 3.8 billion euros in the second quarter, while revenue was up 3.4% at 2.6 billion euros.
Zalando also said Chief Financial Officer Sandra Dembeck had decided not to renew her contract beyond the current term ending on Feb. 28, 2025.
