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Zalando on a growth track, ups FY16 EBIT outlook

By Prachi Singh

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Management

Zalando said that it witnessed strong performance in the first nine months of 2016, with 21.9 percent revenue growth to 2,547 million euros (2,784 million dollars). The company increased its full-year adjusted EBIT margin guidance to 5-6 percent. In the third quarter, the company’s revenues rose 17.1 percent to 835 million euros (912 million dollars). Q3 EBIT margin improved 2.3 percent, while it increased 4.7 percent for the nine-month period.

“It’s amazing to see that two years after our IPO, Zalando continues to go from strength to strength,” says Rubin Ritter, Co-CEO, adding, “We have built a strong platform for ongoing progress and an exciting 2017.”

Brand associations pay off during the period

Zalando’s mobile traffic share increased to 67 percent, while the share of mobile orders surpassed 50 percent. The company said its Bread&Butter fashion event attracted more than 20,000 visitors. Gigi Hadid presented Tommy Hilfiger’s Tommy X Gigi collection, which she co-created, and Marni’s exclusive shoe collection for Zalando was introduced during the period.

The company said, after the launch of the Italian satellite warehouse, which now fulfils 70 percent of Italian orders, Zalando will start operations at another satellite warehouse close to Paris, France, in the first quarter of 2017 and another large-scale fulfilment centre would be developed close to Szczecin, Poland.

The company has reiterated its growth ambition for the next few years of 20-25 percent. For 2016, Zalando expects revenue growth to come in towards the higher end of the 20-25 percent growth corridor, and increases full-year adjusted EBIT margin guidance to 5-6 percent.

Picture:Zalando

Zalando