Zalando, Europe’s biggest pure online fashion retailer, made its first move into physical stores with the acquisition of streetwear retailer Kickz.
Munich-based Kickz, which runs 15 stores in Germany as well as websites, was acquired for an undisclosed sum.
Zalando said in its statement, “With the addition of Kickz, Zalando will further strengthen its sports and lifestyle segment, especially in the area of basketball. The transaction is subject to merger control clearance by German and Austrian competition authorities, and is expected to close in the first half of 2017. All parties have agreed not to disclose financial details.”
Zalando revealed the acquisition while reporting 2016 revenues grew 23 percent to €3.64 billion from €2.96 billion a year ago. The adjusted EBIT margin increased to 5.9 percent, which corresponds to an adjusted EBIT of €216.3 million, up from €107.5 million a year ago. For 2017, Zalando expects an adjusted EBIT margin in the range of 5 to 6 percent.
“Strong growth requires nonstop investment. We are proud to have significantly progressed in expanding our business profitably,” said co-CEO Rubin Ritter in a statement. “As we build the technology and operating system to transform the European fashion industry, we will further invest into a unique and flawless consumer experience and a stronger supplier proposition to continue to drive growth ahead of the market. At the same time, we plan to expand our team by creating more than 2,000 new jobs this year.”
Photo courtesey Kickz
