German online retailer Zalando has raised its third quarter turnover more than 17 % compared to the year before, but the company keeps losing money outside of its home market.
Zalando keeps losing money outside of DACH
Zalando's third quarter turnover grew 17.1 % to 835 million euro as turnover grew 9.7 % in the DACH region (Germany, Austria and Switzerland), while the rest of Europe managed a 24.3 % turnover growth. Zalando still generates more than half of its turnover in the German-speaking region.
EBIT grew to 19.5 million euro, a huge turnaround compared to the 23.5 million euro loss last year. The German-speaking countries were the reason for the improvement, because the rest of Europe still has a 17.9 million euro EBIT loss.
Zalando's mobile surge also continues, because 67 % of all of its third quarter visitors used a mobile device, compared to "only" 58.8 % the year before. In total, Zalando welcomed 468.6 million visitors compared to 393.9 million in 2015. Its active user base grew from 17.2 to 19.2 million, prompting an increase in orders, from 13.8 million to 16.4 million, even though the average spend per order dropped from 63.3 to 62.8 euro.