Zalando revenues rise 26 percent in FY14

Group revenues at Zalando in 2014 were up about 26 percent to 2.2 billion euros (2.4 billion dollars). The Group aims to continue its growth path in 2015 with a revenue growth target of 20-25 percent. The company will continue to focus on delivering profitable growth and capital efficiency. Zalando expects the 2015 EBIT margin to be broadly around the level of 2014, driven by investments in long-term growth strategy that includes further expansion of its fashion platform and increase in capabilities to connect customers and brands.

Elaborating on the results, Rubin Ritter, Member of the Management Board, said, “Zalando is in the pole position to continue to outgrow and drive the European online market in fashion. We have unrivaled access to customers and brands and have the necessary infrastructure with capacity for future growth.”

The DACH segment grew about 17 percent, while the Rest of Europe segment grew about 37 percent. Zalando achieved a group wide adjusted EBIT of 82 million euros (90.5 million dollars), corresponding to an adjusted EBIT margin of 3.7 percent.

In the fourth quarter of 2014, Zalando achieved revenues of 666 million euros (735.2 million dollars), up about 21 percent. Continued operating leverage across several cost lines, especially cost of sales and marketing, resulted in strong fourth quarter profitability. Adjusted EBIT was 66 million euros (72.9 million dollars) at group level, corresponding to an EBIT margin of 9.9 percent, and 12.3 percent in the DACH region.

By the end of 2014, Zalando had 14.7 million active customers, adding roughly 600,000 new active customers in the fourth quarter. Zalando has also become an attractive partner and destination for international brands, such as Topshop and GAP, as well as local fashion labels. Mobile traffic increased 48 percent in the fourth quarter, hitting new highs around Christmas in some countries with over 60 percent rise. The mobile share has gone up to 42 percent from 27 percent in 2013.