- Prachi Singh |
Zalando grew revenues in the first half by 21.5 percent to 2,080.7 million euros (2,442 million dollars). Adjusted EBIT remained on prior year levels at 102.1 million euros (119 million dollars) with a margin of 4.9 percent. For the full year, Zalando expects revenue growth in the upper half of its guided range of 20-25percent and an adjusted EBIT margin in the lower half of the 5-6 percent range.
Commenting on the development, the company’s Co-CEO Rubin Ritter said: "We firmly believe that growth is the right strategy to increase the value of our business. Our updated guidance reflects our focus on growth at solid profitability levels."
Q2 revenues rose 20.1 percent
In the second quarter of 2017, Zalando’s revenues grew by 20.1 percent to 1,100.5 million euros (1,291 million dollars), which the company said were driven by a growing active customer base as well as an increase in average orders to 3.7 times per year, marking another all-time high and indicating strengthened customer loyalty. Active customers increased by approximately 800,000 to 21.2 million compared to the previous quarter, the strongest increase since the fourth quarter 2015.
Adjusted EBIT came in at prior year level of 81.8 million euros (95.9 million dollars) or a margin of 7.4 percent.
Zalando to expand European fulfilment network
As part of its continued growth initiatives, Zalando said it plans to expand its European fulfilment network with two large fulfilment centers in Poland and Italy.
Zalando also operates sites of a similar size in Erfurt, Mönchengladbach and Lahr, Germany, and prepares to launch initial operations in Gryfino near Szczecin, Poland in the third quarter of 2017. These, the company said, are complemented by smaller fulfillment centers in Brieselang near Berlin, as well as localized warehouses in Stradella near Milan, Moissy-Cramayel near Paris, and by the end of the year in Brunna near Stockholm.
During the past quarter, the company launched Zalando Fulfilment Solutions with Bestseller as first flagship partner, allowing fashion brands access to its logistics infrastructure and know-how. The transactions of Anatwine and Kickz were closed in the second quarter. Anatwine is a software solution developer that enables fashion brands to sell merchandise on marketplaces. With the addition of Kickz, a multi-channel basketball retailer, Zalando’s assortment was further expanded with Nike, Lacoste, Pepe Jeans and Esprit joining the Zalando Partner Program.