Zalando Numbers for First Half-Year ’16: Profits Rise, Growth in Core Markets Slows Down

Zalando has reported numbers for Q2 2016 and has a presentation up for the first half-year of 2016. (PDF)

Zalando 1st half-year 2016

Reuters on Q2:

Zalando, Europe’s biggest pure online fashion retailer, reported a big jump in second-quarter profitability in its core business in Germany, Austria and Switzerland as investments in logistics and marketing paid off.

Zalando said second-quarter adjusted earnings before interest and taxation (EBIT) almost tripled to 80.9 million euros ($90.3 million) on revenue up 25 percent to 916 million euros, compared to analyst consensus for 78 million and 918 million respectively.

Revenue growth slowed in Germany, Austria and Switzerland to 14.7 percent from 32.5 percent a year ago, but the adjusted EBIT margin for the region quadrupled to 13.9 percent, while it was a steady 4.1 percent for the rest of its business.

Zalando had previously already published information on the profit jump, leading to a rising share price.

The Economist:

 Its shares jumped 23% last month when the company, based in Berlin, published preliminary results suggesting 25% growth and, crucially, an upward readjustment of pre-tax profits for the first half of the year. The company’s rapid rise is the result of its handy use of technology (more than 60% of its traffic comes from smartphones) and its mind-boggling product range (it sells 150,000 articles from 1,500 brands).

Zalando now has 18.8 million active customers, with every active customer making on average 3.3 orders per year.

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