German Zalando has achieved its 20 % growth target for the second quarter, but just barely. It still forecasts a 20 to 25 % growth for its full fiscal year.
Lower margins
Zalando’s second quarter turnover reached 1.1 billion euro, up 20.1 % compared to the year before. Its growth outside of the German-speaking market is still strong: the web shop grew 22.6 % in the rest of Europe, as opposed to a “mere” 15.2 % growth in the DACH region (Germany, Austria and Switzerland).
Its 10.4 % EBIT margin in the DACH region however is markedly higher than the 3.7 % in the rest of Europe. Nevertheless, its margins are lower in both regions as compared to the year before. The fashion web shop’s net profit also dropped from 50.9 to 47.4 million euro.
The surge in site visits was considerable, from 480 to 595 million, with almost 70 % through mobile devices (up from 65 % last year). The number of orders and its number of active customers also expanded to 22.2 and 21.2 million respectively. The average spend per order did drop from 66.2 euro in last year’s second quarter to 64.5 euro in this quarter.
