German fashion web shop Zalando generated a turnover between 1.086 and 1.094 billion euro in the fourth quarter, up nearly 25 % and the first time its quarterly turnover surpassed 1 billion euro.
Huge profit margin growth
The company also forecasts huge growth for its full fiscal year, according to its preliminary results: a 2016 turnover between 3.633 and 3.642 billion euro (+ 23 %), which is at the high end of its its growth expectation. Thanks to the improved turnover, the full-year EBIT grew to a result between 202 and 225 million euro, which is well up from 2015's 107.5 million euro. Its margins also grew from 3.6 % to 5.6 - 6.2 %.
"We have completed a successful 2016. For the first time we broke the billion-euro revenue barrier in a single quarter, a clear result of our customer focus,” said Rubin Ritter, CEO. “We will continue to emphasize growth and further invest behind an ever-improving customer experience across all our markets.”
Zalando also announced it will open a new distribution center in Sweden, similar to its centers in France and Italy. This new location will need to service customers in Sweden, Norway, Finland and Denmark.