Fashion E-Tailer Zalando Eyes Growth Acceleration in 2021: CFO | Technology News

BERLIN (Reuters) – German fashion e-tailer Zalando

sees growth accelerating next year, Chief Financial Officer David Schroeder said on Thursday, after struggling to meet a surge in demand in the early stages of the COVID-19 pandemic.

The imposition of lockdowns in the spring pushed many shoppers online and Berlin-based Zalando raised its guidance for growth in gross merchandise value in 2020 to 25%-27% when it reported strong third-quarter results this month.

“For next year I can promise that we will be prepared for accelerated growth,” Schroeder told the Morgan Stanley European Technology, Media and Telecom Conference.

Europe’s biggest pure-play online fashion retailer is undergoing a transition from a wholesale to a platform model where it enables direct-to-consumer sales by brands like Nike

and backs that up with order fulfillment.

That shift will make it easier to scale up deliveries in response to shifts in demand, Schroeder said, adding that in

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German online fashion retailer Zalando raises full year guidance

(Reuters) – German online fashion retailer Zalando SE increased its full year earnings guidance on Wednesday, as the coronavirus pandemic prompts more people to shop online.

The company said it expects to grow gross merchandise volume (GMV) by 20% to 25% and revenue by 15% to 20% in 2020, up from its guidance from May 6 when the company had expected GMV and revenue growth of 10% to 20%.

Europe’s biggest online-only fashion retailer said it expects adjusted earnings before interest and tax (EBIT) of 250-300 million euros for the full year.

The company said that based on preliminary figures for the second quarter, it has grown GMV by 32% to 34% to 2.67-2.71 billion euros and group revenues by 26% to 28% to 2.01-2.05 billion euros, adding it expects a second quarter adjusted EBIT in the range of 200-220 million euros.

The company’s financial results for the second quarter

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