Zalando reports robust 24.2 percent rise in Q3 revenues

REPORT_ Zalando’s third quarter results have led the company on track for a profitable full year ahead. The third quarter marked continued above-market growth and strong gains in profitability and capital efficiency. Group revenues grew by 24.2 percent to 501 million euros (624.9 million dollars) in the third quarter compared to 404 million euros (503.9 million dollars) in the same quarter, last year.

Growth in Zalando's international markets was particularly strong with revenues in the rest of Europe segment growing by 39.9 percent. The DACH segment continued to lead the group's profitability with an adjusted EBIT margin of 3.9 percent against below 4.3 percent same quarter, last fiscal year, excluding stock based compensation. Overall, Zalando achieved an adjusted EBIT margin of 0.8 percent in the third quarter, marking the first ever group EBIT breakeven in a third quarter.

“Zalando's revenue growth continued to outpace the overall online fashion industry, which faced a difficult start to the fall/winter season due to unseasonably mild weather,” opined Rubin Ritter, Member of the Zalando Management Board, adding, “Reviewing our successful development in the third quarter we expect to reach slight group EBIT profitability for the full year.”

Zalando has put a strong focus on execution during the third quarter, marked by the launch of the successful collaboration with Topshop and the rollout of express delivery across all the company's markets, offering an even more convenient delivery option for Zalando's customers. Zalando continues to focus on execution in the fourth quarter and lately announced the cooperation with GAP starting in spring/summer 2015, becoming the first multi brand online shop to offer GAP fashion to continental Europe.

Company’s share of mobile traffic in the third quarter reached 43 percent, with 5.1 million app downloads by the end of the third quarter. The number of active customers grew by 15 percent from 12.3 million to 14.1 million, and gross merchandise volume per active customer grew by 12 percent. In total, Zalando websites registered 322 million visits in the third quarter.