Loss for Zalando despite decent turnover growth

Loss for Zalando despite decent turnover growth

Despite Zalando's third quarter turnover growing significantly, the German internet giant has generated quite a big loss again. The company says it was a consequence of huge investments "in unique growth opportunities".

40 % turnover growth

First the good news: Zalando's turnover grew 41 to 43 % over the past quarter, it says in a quarterly update. Over the past three months, Zalando's sales reached 707 to 717 million euro, thanks to an increasing number of customers. The exact growth will however only be announced in November.

 

Zalando managed its first profit in 2014, but it is back to onerous ways now: its EBITDA was a 18 to 32 million euro loss, but CEO Rubin Ritter is not worried. "The results are in line with our strategy to invest into long-term growth. In the third quarter we saw unique growth opportunities to significantly beat our growth targets and tapped into these with full conviction. We remain committed to our profitable growth path, but are willing to trade in some profitability to accelerate our growth and gain market share."

 

Zalando, active in 15 different European countries, has altered its forecast on the back of this quarterly update: the turnover forecast was adjusted upwards and its profit forecast was adjusted downwards. It now expects turnover to grow 33 to 35 % (up from 28 to 31 %) and profit to grow 3 to 4 % (down from 4.5 %).

Questions or comments? Please feel free to contact the editors


Carrefour buys stake in Showroomprivé

12/01/2018

Carrefour has obtained a 17 % minority stake in flash sale seller Showroomprivé with the intent of increasing its digital and non-food reach. Former shareholder Conforama did suffer a loss.

Will free home delivery disappear?

15/12/2017

A growing number of online orders also brings additional pressure on the logistical industry. Free home delivery can no longer be maintained according to research company ECC Köln. More flexible options should be installed.

Amazon brings its private labels to Europe

14/12/2017

After it introduced Amazon Prime to an increased number of European markets, Amazon is now bringing in its own FMCG private labels. Over the past few weeks, the online department store launched several private label products in Europe and it has plans for even more. 

Amazon Echo is now available in the Benelux

11/12/2017

Amazon announced it will ship its smart speaker Amazon Echo to another 28 countries, including Belgium and the Netherlands. Its own music streaming service will also get a local launch.

Luxury manufacturers can block retailers from selling on Amazon

07/12/2017

Luxury product manufactures can block retailers from selling their merchandise on online marketplaces like Amazon. The European Court of Justice has ruled on the matter after cosmetics manufacturer Coty filed a complaint.

Surge in mobile sales during Thanksgiving weekend

29/11/2017

During Thanksgiving weekend in the United States, which contains Black Friday and Cyber Monday, there was a big surge in mobile sales. Those two days saw a total sales figure of almost twelve billion dollar (just shy of ten billion euro).

Back to top