German online fashion retailer Zalando SE on Tuesday reported a more than doubling of sales on its site from brands seeking to expand their ecommerce presence, helping total second-quarter revenue jump 27%.
Zalando said adjusted operating profit more than doubled to 212 million euros ($249 million) on revenues of 2.03 billion euros, around the mid-point of the results range it announced last month, when it hiked its full-year forecast.
Europe's biggest pure online fashion retailer has been shifting from being just an online seller to offer brands more logistics and marketing services under its partner program, a higher-margin business than straight ecommerce.
Zalando said it had signed up 180 brand partners to the program in the second quarter, with the volume of items shipped through its fulfilment solutions up 180% as the coronavirus pandemic accelerates the retail shift to online sales.
The number of active customers rose 20% to 34.1 million, while the average basket size ticked up slightly to 56.9 euros.
Zalando said last month it expects 2020 full-year gross merchandise volume (GMV) - sales made on its site by itself or by its partners - to rise by 20% to 25% and revenue by 15% to 20%, with adjusted operating profit of 250-300 million euros.
British rival ASOS last month reported sales rose 10% in the four months to June 30 and said it remained cautious on the short-to-medium term outlook on demand due to restrictions on social events and an uncertain economic outlook.