Zalando lifts full year forecast
Online fashion retailer Zalando has increased its third quarter group revenue by 16% to 18% year-on-year to 827 million to 841 million, according to its preliminary figures.
Zalando expects to achieve adjusted EBIT margin of 1% to 3% in the period.
In the first nine months of 2016, Zalando has grown its revenues to €2.54 billion to €2.554 billion, which is around 22% higher than the same period a year earlier.
Adjusted EBIT for the first nine months is expected to come in at €109 million to €126 million, with a margin of around 4.6% at the mid-point of the range.
The company has reiterated its growth ambition for the next few years with 2016 coming in towards the higher end of the 20% to 25% growth corridor. It has also increased its full-year adjusted EBIT margin guidance for 2016 to between 5% and 6%.
Rubin Ritter, co-chief executive of Zalando, 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. We remain on track to reach our targeted revenue growth for the full year. This proves again our ability to find the adequate trade-off between growth and margin, depending on market conditions.”
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