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On back of better H1, Zalando tweaks full year results
17
Aug '15
Given its first half-year performance, online fashion retailer Zalando is now expecting to exceed its annual revenue growth corridor of 20 to 25 per cent for 2015.

Zalando has now increased its guidance to 28-31 per cent although, guidance for 2015 adjusted EBIT margin remains unchanged at around 4.5 per cent.

“Following a strong spring/summer season during the second quarter of 2015, revenues have continued to develop above expectations,” it said in a press release.

Group revenues rose by 31.5 per cent to €1.38 billion in the first half of 2015 as against €1.05 billion in the first six months of 2014, mainly driven by a considerably larger active customer base.

In the DACH segment, revenue grew by 27.6 per cent to €758.1 million in the six months to June 30, 2015 compared to €594.2 million in the first half of the previous year.

In the rest of Europe segment, turnover grew by 37.8 per cent year over year to €550.3 million, while sales in the other segment rose 27.2 per cent from a year ago period to €68.1 million.

Zalando achieved clear profitability with an adjusted EBIT of €59.2 million in the period under review, corresponding to an adjusted EBIT margin of 4.3 per cent up from 1.2 per cent in the same period of last year.

In the second quarter of 2015, the fashion retailer reported revenues of €733.0 million, up 34.1 per cent year on year.

Adjusted EBIT stood at €30.2 million at the group level, corresponding to an EBIT margin of 4.1 per cent, but down from 6.4 per cent in the previous year due to temporary increase in payment costs.

Zalando informed that during the second quarter, active customers drove up to 16.4 million from 13.7 million in the corresponding quarter of earlier year.

To enable continued growth and customer satisfaction, Zalando has evolved its warehouse footprint, with the focus on three pillars.

They include; construction of a third self-designed logistics hub in Germany; expanding capacity at the existing warehouse in Monchengladbach to the maximum and piloting the first satellite warehouse in Italy.

Construction of the new hub in Germany, which will have similar capacity to Erfurt and Monchengladbach is set to start in fall 2015.

According to the German company, full capacity in Monchengladbach will be reached in the first half of 2017. Together with a service provider, Zalando's first satellite warehouse in Italy is set to start in early 2016.

Rubin Ritter from Zalando said, “Zalando is powering ahead to take full advantage of the great opportunities in European fashion e-commerce.”

“Thanks to our clear focus on customer satisfaction, we have delivered exceptional revenue growth at scale and improving profitability in the first half of 2015,” he too added. (AR)

Fibre2Fashion News Desk – India

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