Zalando, the online retailer, reported consistent revenues of € 4.8 billion in the first half of 2023, up from € 4.8 billion the previous year, owing to “continued efficiency measures and improved order economics.”

Gross profit was € 1.89 billion, down from €1.93 billion the previous year.

The company commented: “While lower energy prices are helping to lower headline inflation, core inflation is proving persistent, and the impact of higher interest rates is increasingly being felt across the economy.”

Zalando boosted its adjusted Earnings before Interest and Taxes (EBIT) in the first half of 2023 from €25.6 million to €144 million as a consequence of its continuous focus on cost effectiveness.

Due to the continued promotional market and the rapidly expanding Lounge by Zalando business, the company’s gross margin fell by 0.6 per cent to 39.3 per cent in the first half of the year.

Increased share-based compensation and the addition of Highsnobiety, which wasn’t a part of the Zalando group in H1 2022, are the two factors that contribute to the increase.

Zalando started reviewing its brand portfolio earlier this year in order to concentrate on profitable development and streamline the business to become “more innovative and faster.”

Looking ahead, the company expects disposable income to grow in the second quarter as inflation subsides and wages rise. As a result, “private consumption is expected to rebound also in the second half of the year”.