Zalando Boosts Quality Assortment, Grows Lifestyle Offering, Elevates
Inspiration and Wins More B2B Partners to Deliver GMV Growth and Rising
Profitability in Q1

EQS-News: Zalando SE / Key word(s): Quarter Results
Zalando Boosts Quality Assortment, Grows Lifestyle Offering, Elevates
Inspiration and Wins More B2B Partners to Deliver GMV Growth and Rising
Profitability in Q1

07.05.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Zalando Boosts Quality Assortment, Grows Lifestyle Offering, Elevates
Inspiration and Wins More B2B Partners to Deliver GMV Growth and Rising
Profitability in Q1

* First-quarter gross merchandise volume (GMV) rises 1.3%

  * Adjusted earnings before interest and tax (adjusted EBIT) increases to
    28.3 million euros in the quarter, representing a margin of 1.3%

  * Business-to-Consumer (B2C) sees strongest growth from the propositions
    Beauty, Sports, Kids & Family as well as 'Lounge by Zalando'

  * Business-to-Business (B2B) adds more multi-channel fulfilment partners
    and grows revenue by 13%

* Full-year guidance for 2024 confirmed

Berlin, May 7, 2024 // Zalando delivered growth and improved profitability
in the first quarter as it boosted the quality of its assortment, saw strong
growth in its lifestyle offerings, made the customer experience more
inspirational and added more logistics partners. The results are a
validation of Zalando's updated strategy, announced in March, to build the
leading pan-European fashion and lifestyle e-commerce ecosystem around its
two main growth vectors: Business-to-Consumer (B2C) and Business-to-Business
(B2B).

Gross merchandise volume (GMV) rose 1.3% to 3.3 billion euros in the first
quarter compared with a year ago. Revenue was 2.2 billion euros compared
with 2.3 billion euros in the prior-year period. Adjusted earnings before
interest and tax (adjusted EBIT) rose to 28.3 million euros in the first
quarter, in line with market expectations and representing a margin of 1.3%,
compared to -0.7 million euros in the prior-year period. The substantial
improvement in profitability was driven by lower fulfilment costs and
successful inventory management, leading to an improved gross margin.

"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 CFO. "B2C customers are showing
increased interest in our quality assortment, digital tools, propositions
and inspiring content. B2B customers are signing up for our unique offering.
Both of our growth vectors are strong and contributing to results,
demonstrating the strength of our plans."

Within the B2C growth vector, Zalando's first pillar is to differentiate
itself through quality to offer the best possible shopping experience in
fashion and lifestyle. In the first quarter, the company further elevated
its assortment, for example by launching the premium sports brand 'On' in 22
markets. To further improve the quality of its digital experience, Zalando
rolled out its size-advice-with-body-measurement tool to customers in Spain,
France and Italy, bringing the total to six markets. Zalando also expanded
its inclusive assortment with the launch of 20 adaptive kid's shoes styles
after talking to parents of disabled children to identify their needs.

The second growth pillar of Zalando's B2C strategy - expanding further as a
lifestyle destination by elevating existing categories into distinct
propositions - showed strong results in the quarter. Propositions offer a
captivating experience by combining a more comprehensive assortment, advice
features, personalised inspiration and seamless convenience. As part of the
new, elevated Designer experience on the website and app, which offers a
luxury boutique-style space for designer brands, the company partnered with
British-Japanese musician and actor Rina Sawayama as a new ambassador for
its Designer offering. Zalando also launched an exclusive co-designed
capsule collection called "Cinema Club" in collaboration with the Italian
designer brand Aspesi. In the quarter, Zalando saw the strongest growth from
its Beauty, Sports, Kids & Family as well as 'Lounge by Zalando'
propositions.

For the third B2C growth pillar - integrating content into commerce and
offering personalised inspiration and entertainment - the company added new
functionality to the Zalando Assistant that allows customers to ask
questions using voice instead of just text, making the experience even more
intuitive and natural. A new source of inspiration, called Trend Spotter,
shows customers emerging fashion trends across six major European fashion
capitals. Entirely powered by Zalando's data, it presents top items that are
trending among customers in Berlin, Paris, Milan, Antwerp, Stockholm and
Copenhagen every week.

GMV at B2C rose 1.3% to 3.3 billion euros in the first quarter, supported by
a timely start into the spring/summer season. Adjusted EBIT rose to 23
million euros, representing a margin of 1.1% in the quarter. The improvement
in profitability by 1.4 percentage points compared to the same quarter of
the previous year was driven by a higher gross margin and lower fulfilment
costs.

In B2B, Zalando is opening up its logistics infrastructure, software and
service capabilities to be a key enabler for e-commerce transactions of
brands and retailers, regardless whether they take place on or off the
Zalando platform. Five more partners came on board for ZEOS multi-channel
fulfilment in the first quarter bringing the total to 27 merchants.

One example of a brand that recently signed up for a more comprehensive
package of services is LolaLiza. The successful Belgian womenswear brand,
which has been part of the partner program since 2020, recently signed a new
deal to include ZEOS fulfilment for countries outside its home market and
will move to Zalando's marketplace integrator, Tradebyte.

Revenue at the B2B growth vector increased 13% to 215 million euros and
adjusted EBIT rose to 5 million euros from 4 million euros in the quarter
from the year-ago period. The adjusted EBIT margin improved to 2.5% from
2.2% a year prior.

Full-year guidance confirmed

Zalando confirms its full year guidance for 2024 and expects both GMV and
revenue to grow 0% to 5% this year compared to 2023. The company will
continue to focus on profitable growth, with margin progression, and
adjusted EBIT is expected to be between 380 million euros and 450 million
euros.

The Q1 2024 financial report, as well as the earnings presentation for
analysts and investors, is available on the Zalando Investor Relations
website. Zalando will report the results for the second quarter 2024 on
August 6, 2024.

(End)

Zalando at a glance

     Key figures*
     IN EUR M                        Q1/24      Q1/23
     Group GMV                       3,269.7    3,226.9
     Percent growth                  1.3 %      2.4 %
     Group revenue                   2,241.4    2,255.6
     Percent growth                  -0.6 %     2.3 %
     B2C revenue                     2,028.0    2,068.1
     B2B revenue                     215.1      189.7
     Reconciliation revenue          -1.7       -2.1
     Adjusted group EBIT             28.3       -0.7
     Adjusted group EBIT margin      1.3 %      0.0 %
     B2C adjusted EBIT               22.9       -4.8
     B2B adjusted EBIT               5.4        4.1
     Reconciliation adjusted EBIT    0.0        0.0
     Net working capital             -328.6     8.9
     Capital expenditure             -59.5      -37.7
     Net income                      -8.9       -38.5
                                                            Q1/24    Q1/23
     Key performance indicators
     Active customers (million) (last 12 months)            49.5     51.2
     Number of orders (million)                             55.2     56.7
     Average orders per active customer (last 12 months)    4.9      5.1
     Average basket size (EUR) (last 12 months)             60.4     57.3

*Definitions are available in the Annual Report 2023

About Zalando
Founded in Berlin in 2008, Zalando is building the leading pan-European
ecosystem for fashion and lifestyle e-commerce around two growth vectors:
Business-to-Consumer (B2C) and Business-to-Business (B2B). In B2C, we offer
an inspiring and quality multi-brand shopping experience for fashion and
lifestyle products to about 50 million active customers in 25 markets. In
B2B, we are using our logistics infrastructure, software and service
capabilities to help brands and retailers run and scale their entire
e-commerce business, on or off Zalando. As an ecosystem, Zalando aims to
enable positive change for the fashion and lifestyle industry.

Contact
Media inquiries
Sheenagh Matthews
Business & Financial Communications
presse@zalando.de


Investor/Analyst inquiries
Patrick Kofler
Investor Relations
investor.relations@zalando.de


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   Language:       English
   Company:        Zalando SE
                   Valeska-Gert-Straße 5
                   10243 Berlin
                   Germany
   E-mail:         investor.relations@zalando.de
   Internet:       https://corporate.zalando.de
   ISIN:           DE000ZAL1111
   WKN:            ZAL111
   Indices:        DAX
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1896881

End of News EQS News Service
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1896881 07.05.2024 CET/CEST