Zalando said today it plans to expand in sports clothing as the online fashion retailer announced a German soccer partnership and reported higher third-quarter growth, lifting its shares nearly 10%.
Although fashion and lifestyle spending in Europe was still "pretty flat", online channels have gained traction in recent quarters, Zalando co-CEO David Schroeder said on a media call.
Zalando, which has expanded into sports including soccer, running and cycling in a bid to bring in younger buyers as well as increase its appeal among men, today announced a five-year partnership with Germany's DFB national soccer federation.
Under the DFB deal, Zalando's logo will feature on all training and pre-match kits for the German men's, women's and youth teams, in addition to a range of marketing rights.
"Sports is a fast-growing online category with double-digit growth rates across the continent," Schroeder said, adding that running had done particularly well.
"Now we obviously aim to replicate the same thing with football," Schroeder said.
The collaboration, which comes ahead of the soccer World Cup next year, did not include exclusivity rights for distribution of the national team kits, a Zalando spokesperson said.
Zalando said its gross merchandise volume (GMV), a key metric measuring the value of all goods sold, rose 21.6% to €4.2 billion in the quarter, mainly driven by the inclusion of newly acquired About You.
If this business had been part of the group in the same period a year ago, the GMV increase would have been 6.7%.
Quarterly revenue, which includes revenues from its logistics network offer and marketing services, rose 26.5% to €3 billion, surpassing analysts expectations of €2.9 billion according to LSEG data.
The company's earnings, however, were a touch below expectations, according to a local trader.
Adjusted earnings before interest and taxes (EBIT) in the quarter increased to €96m from €93m a year earlier.
