Online fashion retailer Zalando does not expect the online boom in fashion retail and its own growth to end soon, despite falling infection figures. "We have been observing the trend of demand towards online for the last ten years", said chief financial officer David Schroder on Thursday at the presentation of the quarterly figures of the Berlin-based company. "This trend has accelerated during the crisis and is definitely not over yet."
Sizable profit after loss a year ago
After weakening at the beginning of the crisis last year, the company has been growing rapidly since then. In the first quarter, earnings rose by almost 47 percent to 2.2 billion euros, as the company announced in Berlin on Thursday. Net Zalando earned 34.5 million euros. In addition to high demand, lower returns also played into the Berlin-based company’s hands. In the previous year, a loss of 86.4 million euros had been incurred.
In the weak prior-year quarter, the Corona crisis had struck for the first time, briefly dampening consumers’ propensity to spend. In addition, special write-downs on inventories had weighed on earnings.