The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Georgina Sarah Johanan - JPMorgan Chase & Co, Research Division - Analyst
: I've got two, please. And the first one was just on current trading and Q2 performance. I think you referenced that you've seen an improved
performance post the Easter weekend. Is it still sensible to assume growth in sort of the region of 10% for Q2, which I think is where consensus is
sitting at the moment? Or given everything else that's going on, is that still looking a bit ambitious, please? That's my first one.
And then the second one was I think you referenced that you've put measures in place to alleviate the overstock in the quarter. Can you just explain
what you mean by measures, please? Do you mean sort of extra planned promo or giving stock back to partners? If you could just explain that,
that would be great, please.
Question: Olivia Townsend - UBS Investment Bank, Research Division - Analyst
: Also, I have two. Just the first one would be around fulfillment costs into the rest of the year. Obviously, as an online retailer, a large proportion of
those are going to be variable. But I'm just wondering, of the costs that can be contracted out, how much of the fulfillment costs can be contracted
out? And have they been contracted? So do you have visibility for the rest of the year?
Secondly, just on expectations for marketing costs and how you're thinking about that for H2. Would you be looking to pull back on marketing
costs if demand is suddenly lower than you expect? Sort of following up from Adam's question on how you're thinking about investment would
be helpful.
Question: Jurgen Kolb - Kepler Cheuvreux, Research Division - Analyst
: Two questions also from me. First of all, again, on the inventory side. I was wondering if you -- or part of your strategy also includes that you may
have canceled orders for the fall/winter collection or maybe discuss with the brands that you may not take in all the orders that you've written for
the second half.
And secondly, if we could maybe talk about pricing and what have you seen in the first quarter in terms of price increases and what is on the agenda
for the remainder of the year. And do you feel that there is a certain elasticity from clients or from customers to act on that?
Question: Michael Benedict - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: I have a couple as well. Firstly, you mentioned you are introducing minimum order values in certain markets. Could you give us an idea of which
major markets they will be implemented in? And when you previously implemented minimum order values, have you seen any material impact
on the top line?
And the second question is on the gross margin. It looks like it may well continue to fall in H1 despite the successful platform transition. I wondered
if you could give us an idea of when you expect that to stabilize and begin to move in a positive direction.
Robert Gentz - Zalando SE - Co-Founder, Co-CEO, GM & Member of the Management Board
Yes. And maybe first on minimum order value. Just to -- just like -- mentality behind the minimum order value is to deaverage the proposition, yes?
So -- and it's -- for us, it's a way to -- as we'll continue to be able to offer items that are in demand at a lower item value. For example, Beauty,
secondhand and, as well, other articles. So -- and it's a mechanism that we -- that were tested out in nine markets, and what we've seen in these
markets is actually positive. So we didn't really see a material impact on the top line, but we saw actually a good shift of the customer behavior and
direction upwards, yes?
And as said, we are entering into more markets, so -- and it might be all markets, but we're entering in more markets. That's what we can say for
now. And Germany is, well, included as one of our biggest markets where we as well see the share of orders that are below threshold that we want
to move upwards. But the experience is very positive, and that's why we are doing this. And it's very normal. It's in line with our strategy.
On gross margin?
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