Zalando first quarter revenue grows 22%

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Zalando update

Online fashion retailer Zalando has credited the good start to its new beauty category for 22 per cent surge in quarterly revenue.

According to its first quarter trading update, the Berlin-based retailer increased its revenue to €1.19 billion (£1.04 billion) after its new beauty category was launched.

Meanwhile, adjusted EBIT was €400,000 (£351,400) and remained breakeven.

During the quarter, Zalando’s new beauty category saw more than 4000 products from 130 different brands become available alongside its fashion range, initially focusing on cosmetics and skin care for women.

“Beauty is the first category we launched in four years and we’re off to a promising start,” co-chief executive Rubin Ritter said.

“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 by 3.5 million to 23.9 million – a 16.7 per cent growth.

In addition, active customers placed an average of four orders with Zalando in the last 12 months, an all-time high.

Customers mainly accessed the retailer from mobile devices, with the mobile visit share reaching 76.6 per cent in the quarter.

Zalando said it now expected full-year revenue growth to be between 20 per cent and 25 per cent with an adjusted EBIT of between €220 million and €270 million.

“Growth is our top priority and that’s exactly what we have focused on in the first quarter, despite a challenging fashion market environment,” Ritter said.

“A delayed start of the spring/summer season put pressure on the industry, however, we have our eyes firmly set on our growth targets.”

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