Q3 2024 Zalando SE Earnings Call Transcript
Key Points
- Zalando SE (ZLDSF) reported a strong start to the autumn-winter season, leading to a significant increase in consumer demand compared to the previous year.
- The company increased its active customer base by half a million quarter-on-quarter, surpassing 50 million active customers.
- Zalando SE (ZLDSF) achieved a 7.8% year-over-year growth in GMV, reaching EUR 3.5 billion, and a 5% increase in revenues, totaling EUR 2.4 billion.
- The B2C segment showed strong performance with a significant improvement in gross margin, driven by better sell-through rates and lower fulfillment costs.
- The company upgraded its full-year outlook, reflecting stronger-than-expected performance in the third quarter, and is on track to meet its revised targets.
- Inventory levels increased significantly quarter-on-quarter, raising concerns about potential overstocking ahead of peak trading periods like Black Friday and Christmas.
- The B2B segment, while showing double-digit revenue growth, experienced lower profitability due to frontloaded investments in future growth.
- Marketing costs increased by 2.1 percentage points, reflecting higher investments in performance marketing, which could impact short-term profitability.
- The launch of the new loyalty program involves one-off costs and revenue deferrals, which may affect short-term financial results.
- The Frankfurt distribution center's opening has been delayed to 2026, potentially impacting logistics efficiency and capacity expansion plans.
Ladies and gentlemen, welcome to the Zalando SE Publication of the Q3 results 2024 conference call. I'm Alessandra, the chorus call operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded.
The presentation will be followed by a question answer session. You can register for questions at any time. (Operator Instructions) The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Patrick Kofler. Please go ahead.
Good morning and welcome to our Q3 2024 earnings call. Today, I'm joined by our CFO, Doctor Sandra Dembeck. Sandra will briefly walk you through the financial development of the quarter and discuss our outlook. She is available for questions afterwards. As usual, this call is being recorded. The live webcast as well as the replay of the call will be available on our Investor Relations web page later today. Sandra, I will now hand it over to you. Please go ahead.
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