Zalando reports strong start to 2018 with revenue up 22%

Online fashion retailer Zalando has reported that in the first quarter of 2018 its revenue increased by 22 % to €1.96bn (£1.71bn).

Zalando achieved adjusted EBIT of €0.4m (£349,931) and remained at breakeven. As a result the company confirmed its full-year guidance of revenue growth at 20-25% and an adjusted EBIT between €220m to €270m (£192m to £236m).

The first quarter revenue growth is attributed to the launch of its beauty category in Germany with more than 4,000 products from 130 different brands available at launch focused on cosmetics and skincare for women.

Zalando announced that it has also seen a strong increase of active customers and record order frequency which drove growth in the first quarter.

The number of active customers grew by 3.5 million, or 16.7%, to 23.9 million. On average, each active customer placed four orders with Zalando in the last 12 months. Additionally it saw an increase in the number of sales from mobile devices as its mobile visit share reached 76.6% in the first quarter.

Co-CEO Rubin Ritter said: “Growth is our top priority and that’s exactly what we have focused on in the first quarter, despite a challenging fashion market environment. A delayed start of the spring/summer season put pressure on the industry, however, we have our eyes firmly set on our growth targets.

“Beauty is the first category we launched in four years and we’re off to a promising start. We see a great opportunity to complement our assortment and strengthen our position as a one-stop destination for fashion and lifestyle.”