Zalando (finally) manages first yearly profit

Zalando (finally) manages first yearly profit

German online fashion retailer Zalando has managed its first yearly profit since its launch in 2008. A decent turnover increase helped create a 2014 EBITDA of 62 million euro.

Turnover up 25 %

Zalando's presentation of its preliminary numbers states that it has reached this 62 million euro because of better cost control, although it refrained from revealing its net profit numbers at this time. Last year, the Berlin-based company had to deal with a 114 million euro loss.

 

Over the past year, the German company managed a 25 % turnover increase to 2.2 billion euro and it expects similar growth (20 - 25 %) again this year. That is good news for a company which recently (in October 2014) went to the Frankfurt stock exchange.

 

"Grand performance and huge success"

Zalando faced a lot of criticism over the past few years because it had billion euros' worth of turnover and still piled up one onerous year after another. CEO Rubin Bitter is therefore very satisfied to be proven right: "Our 2014 performance shows that our business model is sustainable and can generate meaningful margins. This is a grand performance from our teams and a huge success for Zalando."

 

The good news means Zalando feels empowered to keep up this method in the near future: "We will focus on long-term growth over the coming years and we will not focus on short-term margin maximization."

 

The online shoe and fashion retailer has currently entered 15 countries and allegedly welcomes 100 million visitors per month, about half (43 %) through smartphones and tablets.

Questions or comments? Please feel free to contact the editors


Yoox-Net-a-Porter thrives thanks to mobile surge

03/08/2017

Online retailer Yoox-Net-a-Porter has managed to beat analysts’ expectations in the past fiscal year, thanks to a surge in mobile sales. For the first time ever, these sales contributed more than half of the retailer’s total turnover.

Lidl constructs new distribution center in Venlo

01/08/2017

Lidl will open a new distribution center in Venlo, which will cater its web shop’s customer base. The distribution center is not a Lidl Netherlands project, but apparently an international project.

Amazon places own pick-up lockers at consumers' homes

31/07/2017

Amazon announced The Hub, a system of pick-up lockers that can be placed everywhere. They come in different sizes and can be placed both inside or outside of buildings.

Amazon's profit takes enormous hit

28/07/2017

American Amazon’s profit plummeted in the second quarter and is also lower than what analysts had predicted, despite a 25 % turnover increase.

Amazon: a looming problem for other retailers

27/07/2017

Those who thought Amazon’s growth would slow down, were wrong: the company is now worth more than 500 billion dollars. The Amazon effect is even troubling other retailers and investors. How should they react?

European web shop growth stagnates

26/07/2017

The number of companies with an online sales channel in the European Union has stagnated. The study shows that many companies are hesitant to sell abroad, because they fear fraudulent activity.

Back to top