Aug 6 Reuters Online fashion marketplace Zalando reported an 18.5 rise in its operating profit for the second quarter on Tuesday, helped by improved inventory and lower order fulfilment costs, as its sports, designer and beauty segments drove growth.

Zalando has focused on higherpriced brands and the growing sportswear category, along with scaling up its partner business, as it faces competition from fastfashion retailers with cheaper offerings such as Shein.

Shares in Zalando were indicated up 7.3 in Lang Schwarz premarket trade.

Quarterly adjusted earnings before interest and tax EBIT rose to 171.6 million euros 187.9 million from 144.8 million in the same period last year, Zalando said.

Its qross merchandise volume GMV a key revenue metric measuring the total value of all goods sold rose 2.8 on the year to 3.8 billion euros in the second quarter, while revenue was up 3.4 at 2.6 billion euros.

Zalando said it had launched sports campaigns in major European cities in the quarter, featuring athletes including soccer players Robert Lewandowski and David Alaba, as it sought to capitalize on events such as the UEFA Euro 2024 soccer tournament and Olympic Games this summer.

It also introduced its first own sports collection, consisting of 14 pieces.

Zalando39;s number of active customers grew by 300,000 to 49.8 million compared to the first quarter, it said. The number, however, remained below the 50.5 million it recorded in the second quarter last year.

Zalando…