Zalando has raised its outlook for the full year after “exceptionally strong and profitable growth” in the third quarter.

The German online retailer now expects gross merchandise volume (GMV) to grow by 25-27 percent, revenues to increase by 20-22 percent and adjusted Ebit to reach €375-425 million in the full year. Zalando had previously forecast GMV growth of 20-25 percent, revenues increasing by 15-20 percent and adjusted Ebit of €250-300 million for 2020.

According to preliminary figures for the third quarter, Zalando increased GMV by 28-31 percent to €2.43-2.48 billion and revenues by 20-23 percent to €1.83-1.87 billion. Adjusted Ebit is estimated at €100-130 million compared with €6.3 million in the third quarter of 2019.

The company benefited from an accelerated consumer shift towards digital shopping in the course of the coronavirus pandemic. Zalando also enjoyed a lower return rate and a substantial one-off effect caused by the reversal of a write-down of inventories. The write-down had been booked in March, when the recovery of consumer demand was not foreseeable.