Zalando reports Q1 revenue growth of 23.1 percent

In the first quarter of 2017, Zalando said the company continued to outperform the European fashion e-commerce market and grew revenues by 23.1 percent to 980.2 million euros (1,070 million dollars) against 796.1 million euros (869 million dollars) in the first quarter of 2016. Zalando has confirmed its full-year guidance of revenue growth in a range of 20-25 percent and an adjusted EBIT margin in the range of 5-6 percent.

"Our key priority is profitable growth, and that is what we delivered on in the first quarter," said co-CEO Rubin Ritter in media release, adding, "We are determined to win further market share and reach more customers across Europe. That is why we will continue investing in the consumer experience, our technology and logistics infrastructure, as well as our brand partner proposition."

Highlights of the first quarter performance

Adjusted EBIT remained on prior year levels at 20.3 million euros (22 million dollars) against 20.2 million euros (22 million dollars), same quarter last year with a margin of 2.1 percent.

The company added that it surpassed 20 million active customers at the end of the first quarter 2017. The high customer base ordered more often, reflecting a more loyal shopping behavior, triggered also by an increasing use of mobile devices. This translated into continued strong growth in both the DACH and Rest of Europe segments, with a similar growth rate as in the prior year, despite increased scale.

Zalando grew revenues in the DACH region by 17 percent to 475 million euros (518 million dollars) and by 28 percent to 428.3 million euros (467 million dollars) in the Rest of Europe segment.

The company said, this strong growth rate was also supported by marketing campaigns such as the "Man Box campaign" with US actor James Franco and the addition of further highly fashionable brands such as Oysho.

Picture:Zalando website