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 2 questions as well, please. First of all, just a clarification, following up on an earlier question. Am I right in understanding that you said the
magnitude of the improvement in profitability seen in Q1 should be similar in Q2., i.e., you're looking for a close to 5% margin in Q2? That was my
first question, please.
And then second of all, I guess, just coming back to this point on future growth and confidence in reaccelerating growth next year, I guess, I remain
a little bit confused about what would drive that because presumably, kind of you're rationalizing your SKU count, for example. I think there was
an announcement on that a few weeks back.
You're clearly being much more measured in fulfillment costs. And so presumably, that relates to more order bundling and therefore, slower
deliveries for consumers and so on. No new market growth. So what are actually the levers that you are pulling to gain wallet share of those existing
profitable customers, please?
Question: Jurgen Kolb - Kepler Cheuvreux, Research Division - Analyst
: A combination question really. The Offprice channel, obviously, very strong performance in Q1, probably still triggered by excess inventories from
the brand. So you're probably benefiting from that as you've already mentioned in Q4 and you bought merchandise.
Would it be fair to assume that this growth or this ability to buy into excess inventories from the brands will probably disappear throughout the
year. And then at the same time, we saw that your total orders placed declined by 2.2% year-on-year in Q1, despite of a stronger business in Offprice.
So the question is really, how can you drive orders placed being up again or the other way around? Or do you have to focus more now on the
average basket size than you may be initially expected? I see here order basket size up 2%. So that was already a positive performance. But maybe
do you have to do a little bit more here in order to get to your full year GMV for 2023, so from that angle.
Question: Anubhav Malhotra - Liberum Capital Limited, Research Division - Analyst
: I just had one on your multichannel fulfillment operations. Can you give some color on the current size of the business and any major clients that
you have signed up there? And maybe some color on how much interest you are seeing from clients and what potential impact this could have
on your fulfillment cost ratio in the longer term?
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MAY 04, 2023 / 7:30AM, ZALG.DE - Q1 2023 Zalando SE Earnings Call
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