Zalando reports big jump in brands using its services

German online fashion retailer Zalando on Tuesday reported a more than doubling of sales on its site from brands seeking to expand their e-commerce presence, helping total second-quarter revenue jump 27%.

Zalando said adjusted operating profit more than doubled to €212 million ($249 million) on revenues of €2.03 billion, around the mid-point of the results range it announced last month, when it hiked its full-year forecast.

Europe’s biggest pure online fashion retailer has been shifting from being just an online seller to offer brands more logistics and marketing services under its partner programme, a higher-margin business than straight e-commerce.

Zalando said it had signed up 180 brand partners to the programme in the second quarter, with the volume of items shipped through its fulfilment solutions up 180% as the coronavirus pandemic accelerates the retail shift to online sales.

The number of active customers rose 20% to 34.1 million, while the average basket size ticked up slightly to €56.9.

Zalando said last month it expects 2020 full-year gross merchandise volume (GMV) - sales made on its site by itself or by its partners - to rise by 20% to 25% and revenue by 15% to 20%, with adjusted operating profit of €250 million-€300 million.

British rival ASOS last month reported sales rose 10% in the four months to June 30 and said it remained cautious on the short-to-medium term outlook on demand due to restrictions on social events and an uncertain economic outlook.