Zalando has reported pre-tax profits of €23.3 million in its third quarter ended 30 September.

The figure marks a 72 per cent rise on the €13.5 million profits recorded in the same quarter of 2022.

The online fashion retailer said it plans to lay further foundations for future growth with strategic initiatives such as inspiring customers with new content and storytelling formats, the introduction of a luxury boutique-style space with a "different look and feel" on its website called Fashion Store to improve the experience for designer brands and customers, and growing the company’s logistics offering.

“Storytelling, logistics and technology are key to boost our future growth,” said Dr Sandra Dembeck, chief financial officer at Zalando. “Our healthy balance sheet gives us the financial flexibility to make these strategic investments.

“On top of that, our financial discipline meant that we were able to deliver on another quarter of improved profitability.”

The third quarter report also indicated that adjusted earnings were still expected to fall within the guidance range of €300 million to €350 million for the full year 2023.

However, gross market volume (GMV) is now expected to develop between minus one per cent and one per cent, while revenue is anticipated to develop between minus three per cent and 0.5 per cent in 2023.

However, gross market volume (GMV) is now expected to develop between minus one per cent and one per cent, while revenue is anticipated to develop between minus three per cent and 0.5 per cent in 2023.

The company previously expected GMV and revenue to come in at the lower half of the guidance ranges of one per cent to seven per cent for GMV and minus one per cent to four per cent for revenue.

Earlier in 2023, Zalando outlined intentions to return to profitability for the year after profits slumped by over 60 per cent to around €184 million in 2022.

At the time, co-chief executive of the online fashion retailer Robert Gentz anticipated that the company's profitability push – along with a five per cent cut to its global workforce – would help it to the top end of its three to six per cent operating profit margin target by 2025 and result in double-digit margins in the long term.

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