By
DPA
Translated by
Barbara Santamaria
Published
Oct 19, 2016
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Zalando raises guidance despite weaker demand

By
DPA
Translated by
Barbara Santamaria
Published
Oct 19, 2016

Leading European online fashion platform Zalando said preliminary figures show a 16-18% growth in group revenues for the third quarter of 2016, reaching 827-841 million euros. The Berlin-based business expects to achieve an adjusted EBIT of 8-25 million euros in the period.


Foto: Zalando


As a result, Zalando raised its full-year adjusted EBIT margin guidance for 2016 from 4-5.5% to 5.0-6.0%.

Rubin Ritter, co-CEO, said: "In the third quarter we outperformed a sluggish fashion market and improved our profitability significantly, allowing us to increase our guidance for the full-year EBIT margin. We remain on track to reach our targeted revenue growth for the full year. This proves again our ability to find the adequate tradeoff between growth and margin, depending on market conditions."

According to sources familiar with the matter, Zalando experienced a decline in sales on a year-on-year basis due in part to the unseasonably warm weather in September.

The online retailer confirmed on Tuesday evening its growth ambition for the next few years with 2016 coming in towards the higher end of the 20-25% growth corridor.

In the past few months, Zalando has been focused on improving its logistics and marketing operations. The German company reorganised its supply chain, ensuring its ability to react more efficiently to fluctuations in demand.

Zalando’s final numbers will be announced on November 10, 2016.

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