German online fashion giant Zalando put ASOS’s woes firmly into perspective as it unveiled a 300% rise in underlying profits in its latest quarter.
Revenues rose by 5% to €2.38 billion in the three months to September 2024 while underlying profits [adjusted EBIT] jumped to €93 million from €23 million.
Customer orders and the average basket size both rose over the twelve months, added the group.
Like ASOS, Zalando has had its share of problems but unlike its UK rival, Zalando seems to have a handle on them and is recovering rapidly.
Sandra Dembeck, chief financial officer, said: “To capture further growth opportunities, we are investing into initiatives such as evolving our Plus loyalty program, offering more inspiring content, ramping up our tech hub in China and driving localised convenience for customers via our European logistics network.”
Full-year guidance, which was raised in October, was reiterated today with revenue to increase between 2% and 5% and adjusted EBIT to grow to between €440 million and €480 million.
Shares eased 1% today to €27.73.