For the first half of 2017, online fashion retailer Zalando has recorded 21.5 per cent increase in its revenue to €2,080.7 million against €1,712.6 million for the corresponding period of previous year. The company's adjusted EBIT remained on prior year levels at €102.1 million with a margin of 4.9 per cent (HY 2016: 101.2 million, 5.9 per cent margin).

In the second quarter of 2017, revenues grew by 20.1 per cent to €1,100.5 million. Main drivers were a growing active customer base as well as an increase in average orders to 3.7 times per year, marking another all-time high and indicating strengthened customer loyalty. Active customers increased by approximately 800,000 to 21.2 million compared to the previous quarter, the strongest increase since the fourth quarter 2015.

Zalando strongly executed on its platform strategy during the past quarter. The company launched Zalando Fulfilment Solutions with Bestseller as first flagship partner, allowing fashion brands access to its logistics infrastructure and know-how. The transactions of Anatwine and KICKZ were closed in the second quarter. Anatwine is a software solution developer that enables fashion brands to sell merchandise on marketplaces.

With the addition of KICKZ, a multi-channel basketball retailer, Zalando strengthened its sports and lifestyle segment, especially in the area of basketball. The assortment was further expanded with Nike, Lacoste, Pepe Jeans and Esprit joining the Zalando Partner Program.

"We firmly believe that growth is the right strategy to increase the value of our business. Our updated guidance reflects our focus on growth at solid profitability levels. It is in our DNA to continuously evaluate additional investment opportunities, test ideas, and then start scaling them. This can range from assortment additions to our recently launched customer loyalty program Zalando Zet," Co-CEO Rubin Ritter said.

For fiscal 2017, Zalando expects revenue growth in the upper half of its guided range of 20-25 per cent and an adjusted EBIT margin in the lower half of the 5-6 per cent range. As part of its continued growth initiatives, Zalando plans to expand its European fulfilment network with two large fulfillment centers in Poland and Italy. Zalando already operates sites of a similar size in Erfurt, Mönchengladbach and Lahr (Germany), and prepares to launch initial operations in Gryfino near Szczecin (Poland) in the third quarter of 2017. (RR)

Fibre2Fashion News Desk – India

Disclaimer - All News/Articles items are subject to copyright and no article either in full or part may be reproduced in any form without permission from Fibre2Fashion Pvt. Ltd.