Home / Knowledge / News / Apparel/Garments / Fashion etailer Zalando sales skyrocket 125% in 2012
Fashion etailer Zalando sales skyrocket 125% in 2012
19
Feb '13
Europe’s leading online shop for shoes and fashion successfully concluded the business year 2012 and continues to deliver unprecedented growth. With net sales of 1.15 billion EUR Zalando was able to more than double sales compared to the previous year (2011: 510 million EUR), according to the company’s preliminary figures. At the same time, Zalando reached break-even (EBIT) in its core region Germany, Austria and Switzerland (“DACH”) and continued to invest into new markets as well as assortment, proprietary logistics and IT.

Zalando is Europe´s fastest growing company

Zalando is the fastest European company ever to reach more than one billion EUR in net sales only four years after being founded. Robert Gentz, Founder and Managing Director of Zalando, commented: “We are very proud of the remarkable achievements we made as a team. This development reaffirms our business model and our investors’ trust. Zalando is a true European success story.”

Zalando‘s sales grew at a rate of 125 per cent compared to 2011. This increase can be attributed to rising demand in all existing markets including Germany, as well as the addition of seven new countries in 2012, extending the company’s reach to 14 active markets overall. “By launching shops in several new countries we have now established a broad footprint. This will be the basis for Zalando’s growth for the years to come,” added Robert Gentz.

Zalando reaches break-even in its core region DACH (Germany, Austria and Switzerland) and continues to invest into international expansion

In 2012, Zalando proved its capability to combine very strong sales growth with a continued path to profitability. In the most established region DACH, which generates the majority of net sales, Zalando reached break-even (EBIT) while continuing to grow at high rates.

At the same time, Zalando invested into the international markets to further strengthen its leading position in Europe. As a result of this strategy, the Berlin-based company closed 2012 with an improved overall EBIT margin of minus eight per cent of sales (2011: minus twelve per cent).

“Set-up costs are taken into account and part of our strategy for all market entries. The important part is that we see a positive margin trend in all regions as customers are loyal and efficiency is improved,” explained Rubin Ritter, Managing Director at Zalando. “The fact that we reached break-even in our core region already in our fourth year proves the success of our business model and has encouraged us to invest even faster into building leadership in the international markets,” continued Ritter.

To drive future expansion, Zalando remains financially well-equipped. “In 2012, we further increased Zalando’s equity ratio to more than 50 per cent from 39 per cent back in 2011. We follow a fast growth path, and always have countered this with a very conservative balance sheet,” emphasized Rubin Ritter.


Must ReadView All

Chinese firm sets up textile-garment chain in Vietnam

Apparel/Garments | On 13th Dec 2017

Chinese firm sets up textile-garment chain in Vietnam

Worldon Vietnam Co. Ltd under the Chinese Shenzhou Group is likely to ...

Courtesy: SATO Global Solutions

Information Technology | On 13th Dec 2017

Sensor networks improve inventory management

Sensor networks like radio frequency identification (RFID) and smart...

CMAI hails review of FTP as 'progressive package'

Apparel/Garments | On 13th Dec 2017

CMAI hails review of FTP as 'progressive package'

The Clothing Manufacturers' Association of India (CMAI) has hailed...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search