Zalando posts uplift in revenue as it unveils plans to enter beauty market
Zalando, the German online fashion retailer, has grown its third quarter revenue by 27.5-29.5% to €1.064 to €1.081 billion according to preliminary figures.
The company now expects to achieve an adjusted EBIT of €-5 to €5 million with an adjusted EBIT margin of -0.5% to 0.5%.
In the first nine months of 2017, Zalando’s revenues climbed by 23.5% to 24.1% to €3.145-€3.162 billion. Adjusted EBIT for the first nine months is expected to come in at €97-107 million with a margin of 3.1% to 3.4%. This compares to €121 million with a 4.7% margin in the same period in the prior year.
Zalando co-chief executive Rubin Ritter said: “We continue to push forward with our growth strategy at full speed, winning market share. Our results for the third quarter underline once again that our strong business expansion is driven by ongoing investments into our technology and logistics infrastructure, brand partner proposition and consumer experience. The expansion into the beauty market is a natural next step and reflects the demand of our customers.”
The company will enter the beauty market in spring 2018 as it looks to become a one-stop destination for fashion and lifestyle products. Items will include cosmetics, skin care and fragrances across various price points. The new category will initially be launched in Germany, with other markets set to follow.
