Zalando raises full year EBIT outlook

Zalando group revenues grew to 827-841 million euros (908-923 million dollars) or by 16-18 percent in the third quarter of 2016, according to preliminary figures. Zalando expects to achieve an adjusted EBIT of 8-25 million euros (8.7-274 million dollars), corresponding to an adjusted EBIT margin of 1-3 percent. The company has increased full-year adjusted EBIT margin guidance for 2016 to 5-6 percent.

Commenting on the third quarter trading, Rubin Ritter, co-CEO, said, "In the third quarter we outperformed a sluggish fashion market and improved our profitability significantly, allowing us to increase our guidance for the full-year EBIT margin."

In the first nine months, the company achieved revenues of 2,540-2,554 million euros (2,788-2,804 million dollars), growing by around 22 percent. Adjusted EBIT for the first nine months is expected to come in at 109-126 million euros (119-138 million dollars), a margin of around 4.6 percent at the mid-point of the range. As a result, Zalando reiterates its growth expectations towards the higher end of the 20-25 percent growth corridor for the next few years.

Picture:Facebook/Zalando