Zalando boosted by good start to beauty category
Online fashion retailer Zalando has increased its first quarter revenue by 22 % to €1.196 billion after its new beauty category got off to a good start.
Meanwhile, adjusted EBIT was €0.4 million and remained breakeven.
The company now expects full-year revenue growth to be between 20% and 25% with an adjusted EBIT of between €220 and €270 million.
Zalando co-chief executive Rubin Ritter said: “Growth is our top priority and that’s exactly what we have focused on in the first quarter, despite a challenging fashion market environment. A delayed start of the spring/summer season put pressure on the industry, however, we have our eyes firmly set on our growth targets.”
During the period, Zalando successfully launched its new beauty category in Germany. More than 4,000 products from 130 different brands were available at launch, which initially focused on cosmetics and skin care for women.
Ritter added: “Beauty is the first category we launched in four years and we’re off to a promising start. We see a great opportunity to complement our assortment and strengthen our position as a one-stop destination for fashion and lifestyle.”
Zalando also increased its number active customers and order frequency. The number of active customers rose by 3.5 million, or 16.7 %, to 23.9 million. On average, each active customer placed four orders with Zalando in the last twelve months to mark an all-time high.
Customers mainly accessed Zalando from mobile devices as the mobile visit share reached 76.6 % in the period.
