Zalando is still on course to make a small profit for its entire year. The German online fashion shop has once again raised its turnover considerably and has managed to break-even in its third quarter for the first time ever.
Fast (mobile) growth
Zalando's third quarter turnover grew 24.2 % to 501 million euro. Last year, it managed 404 million euro in that same quarter. Turnover grew the most in its "Rest of Europe" region, which contains all non-German speaking countries, with an impressive + 39.9 % to 198 million euro.
The German-speaking European countries brought in the most profit. Adjusted EBIT margins reached 3.9 %, while it was merely 0.8 % across all markets. It is the first time in history that Zalando has managed to avoid a loss in its third quarter.
"Zalando’s revenue growth continued to outpace the overall online fashion industry, which faced a difficult start to the fall/winter season due to unseasonably mild weather,” Rubin Ritter, a member of the Zalando management board, said. He believes the company should have a slightly profitable year, on the back of its decent third quarter.
Zalando's mobile growth is a considerable factor in its growth: 43 % of its customers visited the site through mobile devices in the third quarter, while its app has already been downloaded more than 5 million times.