Zalando has posted an uptick in revenues as it reveals plans to enter the beauty market.
According to its preliminary figures, the online fashion retailer raked in €1.64 billion (£1.4 billion) in third quarter revenue, an in increase of around 27.5 per cent.
However, German company now expects its adjusted EBIT for the same period will now fall somewhere between a loss of €5 million (£4.46 million) and a profit of €5 million, with an adjusted EBIT margin of -0.5 per cent to 0.5 per cent.
Zalando also used its trading update to announce plans to enter the beauty market for the first time in spring next year.
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.
It will also open a beauty concept store in Berlin, which will host events, product launches and offer tutorials.
Zalando said it was still in negotiations with beauty brands so they could not reveal what they would offer as yet.
“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,” Zalando co-chief executive Rubin Ritter said.
“The expansion into the beauty market is a natural next step and reflects the demand of our customers.”
Zalando’s expansion into beauty follows the likes of Asos, Pull & Bear, Boohoo and Missguided, which have all introduced their own make-up and beauty ranges this year.
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