News

Zalando lifts profit forecast as well as site visits soar

FILE PHOTO: the logo of The fashion retailer Zalando is displayed on the new head office in Berlin, Germany, on 10 April 2019 at the latest. REUTERS/Hannibal Hanschke/File Photo

BERLIN (Reuters) – Zalando, Europe’s biggest online fashion retailer, has a full-year profit outlook on Thursday, after it reported a big jump in the number of visitors to the web site and order intake in the second quarter of the year.

Zalando, has seen its profitability squeezed if it has invested heavily in logistics and technology, in order to speed up the delivery, as well as the average order size has decreased, a trend that has been attempted by means of a variety of measures.

The total number of active customers grew by 15% to 28.3 million in the second quarter of Zalando’s 17 European markets, while the site visits, a jump of more than than one-third, 84% of which came from mobile devices.

Adjusted earnings before interest and taxes (EBIT) amounted to 102 million euros ($112.71 million), on sales up 20.1% to 1.567 billion euros, compared with an average analyst forecast of 95 million, and eur 1.6 billion.

It raised its outlook for adjusted EBIT to be in the “top half” of the previously targeted range of between € 175 million and 225 million, respectively. It is said that it is expected that the growth rate of the income of the low-end of a 20 to 25 percent range, rather than “on” the low side.

Last month, a British rival ASOS warned on profit for the third time since December, saying that the problems of the increase of warehouses in the United States and in Germany, there is a limited availability of the product, and the impact of turnover and increase in cost.

Reporting by Emma Thomasson; Editing by Thomas Seythal and Michelle Martin

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.

Most popular