Zalando sees 27.5-29.5 percent revenue growth in Q3

Zalando said group revenues grew between 1,064-1,081 million euros (1,251-1,272 million dollars) or by 27.5-29.5 percent in the third quarter of 2017, on top of a 17.1 percent growth reported in the third quarter of 2016, according to preliminary figures. For the same period, Zalando expects to achieve an adjusted EBIT of negative 5 to 5 million euros (5.8 million dollars), corresponding to an adjusted EBIT margin of -0.5 to 0.5 percent. Meanwhile, Zalando also announced that it will enter the beauty market in spring 2018.

Commenting on the third quarter trading, the company’s Co-CEO Rubin Ritter said: “Our results for the third quarter underline once again that our strong business expansion is driven by ongoing investments into our technology and logistics infrastructure, brand partner proposition and consumer experience. The expansion into the beauty market is a natural next step and reflects the demand of our customers.”

Zalando to enter beauty market in 2018

Zalando added it plans to enter the beauty market in spring 2018 to tap into the unique opportunity for beauty online shopping in Europe and supplement its current fashion assortment. The company will start selling products along the full product range - such as cosmetics, skin care or fragrances - and across various price points. The new category will initially be launched in Germany, with other markets set to follow after a successful ramp-up phase.

In the first nine months, Zalando added that it achieved revenues of 3,145-3,162 million euros (3,699 to 3,719 million dollars), a growth of 23.5-24.1 percent compared to 21.9 percent rise in the first nine months of 2016. Adjusted EBIT is expected to come in at 97-107 million euros (114-125 million dollars), a margin of 3.1-3.4 percent against 4.7 percent margin in the same period last year.

Picture:Zalando website