Zalando positively adjusts growth forecast

Zalando positively adjusts growth forecast

German web shop Zalando saw its turnover grow nearly a third in the first half of 2015, reason enough for the company to adjust its growth forecast upwards. The German company will also open additional distribution centers in order to keep up with growth.

16.4 million active customers

Zalando's turnover grew 31.5 %, from 1.05 to 1.38 billion euro, which is not surprising as the company still attracts an increasing number of customers. It now has 16.4 million active customers, compared to 13.7 million in the first half of last year, according to a recently published 6-month report. Profits are also following suit: Zalando's EBIT has nearly quintupled to 59 million euro, which leaves a 47.3 million euro net profit. Last year, Zalando barely managed to break even in the first half of 2014.

 

Over the course of the last 6 months, Zalando's turnover grew more outside its home territory: up 27.6 % in Germany, Austria and Switzerland, compared to 37.8 % in the rest of Europe. Nevertheless, its home territories have proven to be more profitable: 6.2 % compared to 1.2 % in the rest of Europe.

 

First non-German distribution center incoming

These positive numbers have given the board plenty of confidence, which resulted in an adjusted growth forecast. Instead of a 22 to 25 % growth, the Germans now expect to reach a turnover growth of 28 to 31 %. If true, 2015 would have outpaced 2014 as the company managed a 26 % turnover growth last year.

 

Zalando will also invest heavily in its logistics to assist its planned growth: it will start construction on a new German distribution center in the fall, with the same capacity as its other two centers in Erfurt and Mönchengladbach. Early next year, Zalando will also open its very first storage facility outside Germany, in Italy. By mid-2017, it will also have expanded its distribution center in Mönchengladbach to maximum capacity.

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