Zalando Reports 18.5% Jump in Q2 Operating Profit

The logo of fashion retailer Zalando is pictured at the new headquarters in Berlin, Germany, April 10, 2019. (Reuters)
The logo of fashion retailer Zalando is pictured at the new headquarters in Berlin, Germany, April 10, 2019. (Reuters)
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Zalando Reports 18.5% Jump in Q2 Operating Profit

The logo of fashion retailer Zalando is pictured at the new headquarters in Berlin, Germany, April 10, 2019. (Reuters)
The logo of fashion retailer Zalando is pictured at the new headquarters in Berlin, Germany, April 10, 2019. (Reuters)

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.



Adidas Posts Forecast-Beating Quarterly Profit on Strong Sneaker Demand

Adidas products are displayed at the company headquarters in Herzogenaurach, Germany March 5, 2025. (Reuters)
Adidas products are displayed at the company headquarters in Herzogenaurach, Germany March 5, 2025. (Reuters)
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Adidas Posts Forecast-Beating Quarterly Profit on Strong Sneaker Demand

Adidas products are displayed at the company headquarters in Herzogenaurach, Germany March 5, 2025. (Reuters)
Adidas products are displayed at the company headquarters in Herzogenaurach, Germany March 5, 2025. (Reuters)

German sportswear and apparel maker Adidas on Wednesday reported first-quarter sales and profit above expectations, citing growth across all its markets and channels.

First-quarter operating profit jumped 82% to 610 million euros ($692 million), the group said, resulting in a margin of 9.9%. Analysts, in a company-provided consensus, had expected a margin of 8.9% and profit of 546 million euros.

The success of sneakers including Samba and Gazelle has helped Adidas gain further market share from US rival Nike as well as maintain a competitive advantage over newer sportswear brands like On Running and Hoka in uncertain times.

Chief Executive Bjorn Gulden has turned Adidas around since the brand cut ties with rapper Ye and scrapped its lucrative Yeezy sneaker line in October 2022, with the last Yeezy inventories sold at the end of 2024.

First-quarter sales rose 13% to 6.15 billion euros, also higher than the 6.095 billion consensus, Adidas said, adding that excluding sales from the Yeezy line a year earlier quarterly revenue of the Adidas brand was up 17%.

Frankfurt-listed shares in Adidas, which is scheduled to release final first-quarter results on April 29, were 6.2% higher at 1702 GMT.