- Prachi Singh |
Zalando has said that it grew group revenues in the third quarter of 2015 to 707 euros-717 million euros (811-823.3 million dollars) or by 41-43 percent, according to preliminary figures. In the first nine months of 2015 Zalando achieved revenue growth of around 35 percent.
Commenting on the update, Rubin Ritter, Member of the Management Board, said, “The results are in line with our strategy to invest into long-term growth. In the third quarter we saw unique growth opportunities to significantly beat our growth targets and tapped into these with full conviction. We remain committed to our profitable growth path, but are willing to trade in some profitability to accelerate our growth and gain market share.”
Raises full year guidance
Zalando continued to invest in its customer proposition in the third quarter, driving revenue growth beyond expectations at the expense of margin. While gross margin was in line with the prior year, profitability was mainly impacted by higher fulfillment and marketing costs.
Following these strong results in the first nine months of the year, Zalando is now expecting to substantially exceed its initial 2015 revenue growth corridor of 20-25 percent and revised guidance of 28-31 percent and is increasing its guidance to 33-35 percent. As a result of additional growth investments, guidance for 2015 adjusted EBIT margin is lowered to 3-4 percent.