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By
Reuters
Published
Jul 18, 2014
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Zalando says had first operating profit ever in second-quarter

By
Reuters
Published
Jul 18, 2014

FRANKFURT, Germany - Europe's biggest online fashion retailer Zalando, a possible IPO candidate, said on Friday it had its first profitable quarter ever on an operating level.

"The favorable trend towards break-even observed in Q1 2014 accelerated, leading to a profitable Q2 at group level and a first half-year group EBIT margin around break-even," the company said in a statement.

Zalando, which is 37-percent owned by Swedish investment firm Kinnevik, started selling shoes in Germany in 2008 and now ships 1,500 different brands to customers in 15 countries.

Zalando said it expected second-quarter sales to come in at between 520 million euros (411 million pounds) and 560 million euros, up from 437 million in the same period last year.

"Based on this development we reiterate our plan to take a significant step towards, but not quite reaching, EBIT break-even at group level for the full year 2014," Rubin Ritter, member of Zalando's management board, said in a statement.

The Berlin-based start-up, whose rivals include Britain-based ASOS Plc, is considering an IPO in October, people familiar with the transaction have told Reuters.

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