Corporate | 10 November 2016 08:00
Zalando SE: ZALANDO OUTPERFORMS MARKET AND IMPROVES PROFITABILITY
|
Zalando SE / Key word(s): Quarter Results/9-month figures
ZALANDO OUTPERFORMS MARKET AND IMPROVES PROFITABILITY – Q3 revenues EUR 835 million (+17.1%), adjusted EBIT margin 2.3% – 9M revenues EUR 2,547 million (+21.9%), adjusted EBIT margin 4.7% – Revenue guidance reconfirmed; profitability guidance for FY 2016 raised to adjusted EBIT margin of 5.0-6.0% BERLIN, NOVEMBER 10, 2016 // Zalando posted a successful performance in the first nine months of 2016, with strong growth and profitability, and increased its full-year adjusted EBIT margin guidance to 5.0-6.0%. In the third quarter, Europe’s leading online platform for fashion continued to outperform the market despite challenging market conditions and comparison with a strong Q3 2015 and managed to gain market share. Zalando increased profitability across all major operating cost lines, including cost of sales, fulfillment and marketing. At the same time, the company continued to invest into its customer proposition, including mobile, brand, assortment and convenience. Combined with strong working capital management, and significant capex of EUR 116 million, this resulted in a positive nine-month free cash flow of EUR 66 million. “It’s amazing to see that two years after our IPO, Zalando continues to go from strength to strength,” says Rubin Ritter, co-CEO. “We have built a strong platform for ongoing progress and an exciting 2017.” Zalando continued to improve its mobile offering in the third quarter and its Android app recently won the renowned Editor’s Choice award from Google Play. Mobile traffic share increased to 67%, while the share of mobile orders surpassed 50%. The sold-out Bread&Butter fashion event attracted more than 20,000 visitors, showcasing Zalando’s ongoing investments into brand visibility and reach. During the event, Zalando gathered more than 800 million impressions across all media and social media channels. Gigi Hadid presented Tommy Hilfiger’s Tommy X Gigi collection, which she co-created, and Marni’s exclusive shoe collection for Zalando was introduced, currently available at Zalando. Further popular brands were added to the assortment in the past quarter, increasing the number of available items on the Zalando stores to approximately 200,000. The operational backbone of Zalando’s platform is evolving strongly, supporting its development to provide the best fulfillment experience for fashion in Europe. After the successful launch of the Italian satellite warehouse, which now fulfills 70% of Italian orders, Zalando will start operations at another satellite warehouse close to Paris, France, in the first quarter of 2017. Zalando further announced the construction of another large-scale fulfillment center close to Szczecin, Poland. It will cover 130,000m² and is expected to start manual operations in autumn 2017. Employee numbers increased strongly to approximately 11,200 as of September 30, 2016, up from approximately 10,000 employees as of December 31, 2015 – primarily driven by headcount in Technology and Operations. Zalando’s tech team continued to grow, with approximately 1,600 members at its headquarters in Berlin and across six further locations by the end of the third quarter. Zalando reiterates its growth ambition for the next few years of 20-25%. For 2016, Zalando expects revenue growth to come in towards the higher end of the 20-25% growth corridor, and increases full-year adjusted EBIT margin guidance for 2016 to 5.0-6.0%.
Zalando group – Revenue and adjusted EBIT (EUR million)
1. DACH segment is comprised of Germany, Austria and Switzerland. 2. Rest of Europe segment includes all other countries in which Zalando presently operates. 3. The segment Other mainly includes Zalando Lounge, as well as three outlet stores in Berlin, Frankfurt and Cologne. 4. Adjusted to exclude equity-settled stock based compensation costs.
5. Site visits defined as the number of series of page requests from the same uniquely identified client at Zalando, including website, m.site and apps in the measurement period. A visit is considered ended when no requests have been recorded in more than 30 minutes. 6. Mobile is defined as tablets, mobile sites and apps. 7. Active customers defined as the number of customers placing at least one order in the last twelve months in the measurement period irrespective of cancellations or returns. 8. Number of orders defined as the number of customer orders placed in the measurement period irrespective of cancellations or returns. An order is counted on the day the customer places the order. Orders placed and orders delivered may differ due to orders that are in transit at the end of the measurement period or have been cancelled. 9. Average basket size defined as the transactional revenue (incl. VAT and transactional volume of Partner Program) after cancellations or returns divided by the number of orders. NOTES TO EDITORS
ABOUT ZALANDO
CONTACT ZALANDO
2016-11-10 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
|
| Language: | English | |
| Company: | Zalando SE | |
| Tamara-Danz-Straße 1 | ||
| 10243 Berlin | ||
| Germany | ||
| E-mail: | presse@zalando.de | |
| Internet: | https://corporate.zalando.de | |
| ISIN: | DE000ZAL1111 | |
| WKN: | ZAL111 | |
| Indices: | MDAX | |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange | |
| End of News | DGAP News Service |