The corona pandemic is still giving a huge push to Zalando (ETR:ZAL) stock price. The rally continued on Wednesday.
In the third quarter, the Berlin internet fashion retailer increased its sales by almost 22 percent to EUR1.85 billion.
In addition to the increasing customer demand for digital offers in the wake of the Corona crisis, the company is also benefiting from the positive development of the partner programs – Zalando also earns money here when retailers sell goods on its Internet platform.
Since the collections from the spring and summer sold exceptionally well, Zalando was able to release write-downs of EUR35 million that the group had made as a precautionary measure due to the pandemic. This had a positive effect on profitability in the reporting period, but efficiency improvements also contributed to higher profits.
The bottom line was that Zalando achieved a profit of 58.5 million euros in the third quarter, after a loss of 13.6 million euros a year earlier. Because of the strong third quarter, the Zalando management had already raised the annual targets at the beginning of October.