Zalando Se · XETR:ZAL
Zalando — Zalando Se Ord — Q1 2023 Earnings Presentation
18 slides from Zalando's earnings presentation, May 4, 2023
Slide 1: Zalando Q1/23 Earnings Call
Zalando Q1/23 Earnings Call May 4, 2023 Dr. Sandra Dembeck (CFO)
Slide 2: Executive summary
Zalando Q1/2023 Executive summary 01 Solid Q1 performance despite continued macroeconomic headwinds Performance reflects continued focus on profitable growth with GMV growing at +2.8% and a year-over-year improvement in adjusted EBIT from EUR (52)m to EUR (1)m 02 On track to reach 2025 partner busin
Slide 3: Financial update
Zalando Q1/2023 Financial update Q1/23 3
Slide 4: In Q1, we grew our top line and continued to significantly improve our profitability profile
Zalando Q1/2023 Group performance In Q1, we grew our top line and continued to significantly improve our profitability profile Group GMV Group Revenue 1 Group Adj. EBIT 2 (in EUR m) (in EUR m) (in EUR m and margin in % of revenue) +2.8% (2.4)% (0.0)% +2.3% (1) 3,153 3,242 (52) 2,205 2,256 Q1/22 Q1/2
Slide 5: Resilient customer spend driven by larger basket sizes
Zalando Q1/2023 Customer metrics Resilient customer spend driven by larger basket sizes Active customers Average orders per (2.5)% 1 (L12M in millions) active customer 1 (L12M in #) 5.2 5.1 4.8% Q1/22 Q1/23 1.9% Average basket size 2 after returns 1 (L12M in EUR) 56.3 57.4 51.2 Q1/22 Q1/23 48.8 (0.8
Slide 6: Fashion Store GMV broadly flat complemented by strong growth in Offprice and all other segments
Zalando Q1/2023 Segment revenue Fashion Store GMV broadly flat complemented by strong growth in Offprice and all other segments 1 Revenue (EUR m) - % growth yoy Fashion Store – DACH Offprice Fashion Store (5.7)% GMV (2.0)% +32.9% (3.5)% 840 792 GMV 416 (0.6)% 313 Fashion Store – Rest of Europe All o
Slide 7: Significantly improved profitability across Fashion Store and Offprice segment
Zalando Q1/2023 Segment adj. EBIT Significantly improved profitability across Fashion Store and Offprice segment Adj. EBIT1 (EUR m) - margin in % of revenue Fashion Store Fashion Store – DACH Offprice (3.2)% (1.1)% 2.5% 4.1% 2.1% 5.9% 32 25 22 6 Fashion Store – Rest of Europe All other segments (19)
Slide 8: Improved group profitability through continued efficiency gains with particular focus on fulfillment
Zalando Q1/2023 Group P&L Improved group profitability through continued efficiency gains with particular focus on fulfillment Costs and margins Q1/22 Q1/23 YoY ∆ (in % of revenue) Remaining inventory clearance Gross profit 38.7% 37.9% (0.8)pp Improved order economics and sustained efficiency Fulfil
Slide 9: Lean net working capital position fuelled by increasing share of partner business
Zalando Q1/2023 Net working capital Lean net working capital position fuelled by increasing share of partner business Net working capital (end of Q1) (in EUR m and % of annualized revenue) EUR m Q1/22 Q1/23 YoY ∆ 1.8% Inventories 1,953 2,058 5% 160 Trade Receivables 635 738 16% Strong growth momentu
Slide 10: Cash and cash equivalents remain strong at EUR ~1.8 billion
Zalando Q1/2023 Cash position Cash and cash equivalents remain strong at EUR ~1.8 billion in EUR m (167) (38) (35) Seasonal inventory inbound for spring summer season 2023 Primarily consisting of investments in logistics infrastructure 2,025 1,785 1,595 1 Q1/22 Cash & cash Q4/22 Cash & cash Operatin
Slide 11: Outlook
Zalando Q1/2023 Outlook 11 11
Slide 12: We remain committed to our two main ambitions for 2023
Zalando Q1/2023 Outlook We remain committed to our two main ambitions for 2023, profitable growth and continued investment through the cycle Key objective Immediate focus & decisive action • More conservative wholesale buy, scale up via re-order and partner business Strengthen gross • Increase relev
Slide 13: Reiterating our full year 2023 guidance
Zalando Q1/2023 Outlook Reiterating our full year 2023 guidance Our outlook reflects our continued focus on profitable growth in a temporarily demand constrained and inflationary cost environment GMV 1% – 7% Growth Revenue (1)% – 4% 1 Adj. EBIT Profitability (in EUR m) 280 – 350 Capex (in EUR m) 300
Slide 14: Key takeaways
Zalando Q1/2023 Key takeaways 01 Solid Q1 performance despite continued macroeconomic headwinds Performance reflects continued focus on profitable growth with GMV growing at +2.8% and a year-over-year improvement in adjusted EBIT from EUR (52)m to EUR (1)m 02 On track to reach 2025 partner business
Slide 15: Q&A
Zalando Q1/2023 Q&A Q&A 15 15
Slide 16: Issued share capital
Zalando Q1/2023 Share information Issued share capital Share information (as of Mar 31, 2023) Type of shares Ordinary bearer shares with no-par value (Stückaktien) Stock exchange Frankfurt Stock Exchange Market segment Regulated Market (Prime Standard) Index listings DAX Total number of shares outst
Slide 17: Zalando Investor Relations Team
Zalando Q1/2023 Investor Relations Zalando Investor Relations Team Patrick Kofler Dorothee Schultz Andrea Frese Director of IR Manager ESG IR Senior Manager IR Patrick.Kofler@zalando.de Dorothee.Schultz@zalando.de Andrea.Frese@zalando.de Team contact T: +49 3020 9681 584 Zalando SE Valeska-Gert-Stra
Slide 18: Disclaimer
Zalando Q1/2023 Disclaimer Certain statements in this communication may constitute forward looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties. You should not rely on these