German web retailer Zalando posts 26% sales growth in 2014
February 13, 2015 12:51 PM
Berlin-based web-only shoe and apparel retailer Zalando SE says sales grew about 26% in 2014 to reach 2.214 billion euros ($2.53 billion) from 1.762 billion euros ($2.01 billion) a year earlier. The retailer announced the figures in its preliminary Q4 results. Zalando will publish its full Q4 and 2014 results March 5.
For Q4, Zalando’s sales increased 21.1% to 666 million euros ($760.21 million) from 550 million (627.80 million) a year earlier.
For the full year, Zalando, No. 9 in the Internet Retailer Europe 500, reported earnings before interest and taxes of 82 million euros, ($93.6 million) representing the e-retailer’s first full year of profitability. The company did not report net income.
Zalando attributes its profitability in part to sales and marketing cuts in 2014.
"Our 2014 performance proves that Zalando's business model is sustainable and can achieve significant margins," Rubin Ritter, a member of the Zalando management board, said in a statement. "Our focus in the coming years will be to make the right investments for continued long-term growth and value creation, and not to maximize our short-term margin."
Zalando also reconfirmed its revenue growth forecast of 20% to 25% for 2015.
Zalando, which launched in 2008, sells in 15 European countries. The retailer is second in web sales among Europe 500 retailers whose principal market is Germany, behind only massive retail conglomerate, Otto Group, which generated 6 billion euros (US $6.85 billion) in web sales in 2013.
Zalando listed on the Frankfurt stock exchange in October. Its shares closed at 23.85 euros ($27.22) Friday, up from its issue price of 21.50 euros ($24.54).