German online fashion retailer Zalando had an excellent start to 2015, with a 30 % turnover increase thanks to huge increases in customer levels, spending and return visits. Moreover, another profit showed on the balance.
First Q1 profit ever
In its past quarter, Zalando welcomed 393 million customers, an 18 % increase. Not only did the web shop attract additional customers, but they came back more often and spent more. Zalando's number of orders and the average spend per purchase went up. The company, listed on the Frankfurt stock exchange since October 2014, announced that this has resulted in a 643.6 million euro quarterly turnover, up 28.5 % compared to the same period last year.
Thanks to that strong turnover growth, Zalando has managed to turn its 28.9 million euro loss from 2014's first quarter into a 24.3 million euro net profit this time around. This means the company has posted its first profitable Q1 ever.
Zalando's management in Berlin expects a full-year 25 % turnover increase. "We have started the year in full force, with record results in the first quarter. We will keep investing in the customer experience over the next few months and we also want to solidify our international growth. Our new Dublin-based technology center, which opened in April, is only the first step", CEO Rubin Ritter said.