Online fashion retailer Zalando’s Q4 sales rise 30%
January 19, 2016 11:19 AM
(Bloomberg)—German online apparel retailer Zalando SE reported growth of at least 30% in fourth-quarter sales, easing concern over the impact of a mild holiday season in Europe.
Sales rose as much as 31% and were in a range of 865 million euros ($941 million) to 872 million euros $950 million), the Berlin-based company, No. 8 in the Internet Retailer 2015 Europe 500, said Tuesday. Zalando’s 2014 web sales were an Internet Retailer-estimated 2.21 billion euros, according to Top500Guide.com data. Shares jumped, even though revenue was slightly below the average 876 million-euro estimate.
“Winter seems to be delayed this year, but might have some positive impact on the fashion industry in the first quarter,” Christoph Sandner, an analyst at Main First Bank AG, said by phone.
Zalando, spun out of the Samwer Brothers’ Rocket Internet startup incubator, has been reckoning with a warm Christmas season in Europe that’s also hit retailers including Hennes & Mauritz AB (No. 85 in the Europe 500). Zalando shares have tumbled this month as analysts anticipated a tough holiday sales period. They rebounded Tuesday, and were up 7.1% at 31.84 euros as of 10:37 a.m. in Frankfurt.
“It was probably the warmest fourth quarter we’ve ever seen,” managing board member Rubin Ritter said in an interview. “The real winter items weren’t in such strong demand.” Zalando was able to adjust its purchasing during the quarter and be “flexible” in its assortment, he said.
The company plans to report full results for last year on March 1.