Zalando grows the web 32% in 2015’s first half
July 21, 2015 03:45 PM
When it comes to growing web sales, German shoe and apparel web merchant Zalando SE doesn’t hold back on the news.
Zalando, No. 8 in the Internet Retailer 2015 Europe 500 won’t report full second quarter earnings until Aug. 13. But in a foreshadowing of the full earnings report, Zalando says it expects web sales in the second quarter to grow from 33% to 35% with sales ranging from $787.9 million (727 million euros) to $799.8 million (738 million euros).
At 35% growth, Zalando’s second quarter web sales would be more than $200 million higher than web sales of $592.4 million in the second quarter of 2014. “With these figures, Zalando continues to deliver a unique combination of growth at scale and profitability,” says managing director Rubin Ritter. Zalando in the first quarter ended May 12 increased e-commerce revenue 28.5% to $697.5 million (643.6 million euro) from $542.6 million (500.7 millon euro) in the first quarter of 2014
For the first six months of the year Zalando is expecting sales to increase by about 32% to $1.49 billion (1.37 billion euro) from $1.13 billion (1.04 billion euro) in the first half of 2014.
Zalando didn’t release a forecast for net income or loss for the first half of the fiscal year, but did provide an update on projected earnings before interest and taxes. In accounting, earnings before interest and taxes reports the spread between operating revenues and operating expenses and is a measure of a company’s ongoing financial performance.
For the first half of 2015, Zalando is projecting EBIT of $55.3 million (51 million euro) to $71.5 million (66 million euro). “Revenue growth accelerated significantly beyond expectations,” Ritter says.
In 2014, Berlin-based Zalando grew 26% to $2.53 billion (2.214 billion euros) from $2.01 billion (1.762 billion euros) a year earlier.