Zalando turnover grows 23 percent, upbeat on FY17
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Zalando has said that it expects to continue outperforming the fashion retail market again in 2017 and grow revenues in a range of 20-25 percent, following a strong 2016 performance. The company reported gain in market share in every single quarter with revenues in 2016 growing 23 percent to 3,639 million euros (3,836 million dollars).
"Strong growth requires nonstop investment. We are proud to have significantly progressed in expanding our business profitably," said co-CEO Rubin Ritter in a press release, adding, "As we build the technology and operating system to transform the European fashion industry, we will further invest into a unique and flawless consumer experience and a stronger supplier proposition to continue to drive growth ahead of the market. At the same time, we plan to expand our team by creating more than 2,000 new jobs this year."
Zalando to acquire Kickz
The adjusted EBIT margin increased to 5.9 percent, which the company said, corresponds to an adjusted EBIT of 216.3 million euros (228 million dollars). For 2017, Zalando expects an adjusted EBIT margin in the range of 5-6 percent.
In 2016, the company said about 20 million customers (up 11 percent on last year) shopped at Zalando, increasingly using mobile devices, enabled by its technology and operations infrastructure. The number of employees in Zalando's technology team increased from 1,000 in 2015 to more than 1,600. Zalando said, its pan-European logistics network will now expand into 20,000-30,000 m² warehouses in France and Sweden as well as a 130,000 m² logistics center in Poland.
Earlier this week, Zalando announced that it would acquire the retail business of Munich-based Kickz, multi-channel basketball retailer in a bid to strengthen its sports and lifestyle segment, especially in the area of basketball. The transaction is subject to merger control clearance by German and Austrian competition authorities, and is expected to close in the first half of 2017.
to strengthen its sports and lifestyle segment, especially in the area of basketball. The transaction is subject to merger control clearance by German and Austrian competition authorities, and is expected to close in the first half of 2017.Summing up
- Zalando expects to continue outperforming the fashion retail market again in 2017 and grow revenues in a range of 20-25 percent.
- The company has acquired Munich-based Kickz, multi-channel basketball retailer to strengthen its sports and lifestyle segment.
Picture:Zalando