- Prachi Singh |
Zalando revenues grew by about 26 percent to 2.2 billion euros (2.4 billion dollars) in 2014 against 1.8 billion euros (2 billion dollars) in 2013, according to preliminary figures. In the fourth quarter of 2014, group revenues grew by about 21 percent to 666 million euros (753.4 million dollars) compared to 550 million euros (622.2 million dollars) in the same quarter, last year.
Zalando achieved an adjusted EBIT of 66 million euros (74.6 million dollars), corresponding to an adjusted EBIT margin of 9.9 percent in the fourth quarter of 2014, marking a new all-time high quarterly profit. This development was driven by improvements along several cost lines, most notably cost of sales and marketing. For the full-year 2014, Zalando achieved its first ever annual group profit with an adjusted EBIT of 82 million euros (92.7 million dollars), corresponding to an adjusted EBIT margin of 3.7 percent.
“Our 2014 performance proves that Zalando's business model is sustainable and can achieve significant margins. It's a great accomplishment by the team and a tremendous success for the company,” said Rubin Ritter, Member of the Management Board, adding, “Our focus in the coming years will be to make the right investments for continued long-term growth and value creation, and not to maximize our short-term margin.”
Zalando reconfirms its revenue guidance for 2015 with a growth target corridor of 20-25 percent. Focus continues to be on delivering profitable growth; driven by investments in long-term growth, Zalando expects 2015 margins not to exceed the strong level achieved in 2014.