Zalando SE, the German e-tailer that sells dozens of athletic and outdoor apparel and footwear brands in 15 European countries, reported revenues rose 28.5 per cent to €643.6 million ($727 mm) in the first quarter.
Because the results came in well above its 20-25 per cent growth target, the company said it now expects revenue growth for fiscal 2015 to reach the higher end of that same range, or slightly higher. The private-equity backed company also raised its adjusted EBIT margin guidance to 4.5 per cent for the fiscal year compared to 3.7 percent for 2014, when it became EBIT positive for the first time.
Sales in Zalando's core German-speaking markets of Germany, Austria and Switzerland increased 22.3 per cent to €347.1 million ($392 mm), resulting in adjusted EBIT margin of 9.3 per cent, up from -0.1 percent a year earlier.
In the Rest of Europe, revenue grew 37.1 per cent to €265.0 million ($299 mm), which resulted in an adjusted EBIT margin of 1.8 percent, compared with -11.3 percent in the year earlier quarter.
Other revenues, which mainly includes results from outlets stores in Berlin and Frankfurt, grew 33.9 percent to €31.5 million ($35 mm).
Zalando reported total adjusted Group EBIT margin reached 4.5 percent, up 9100 basis points from the first quarter of 2014 thanks primarily to higher gross margin. That translated to adjusted EBIT of €29 million.
Zalando ended the quarter with 15.4 million active customers, up 700,000 since the end of 2014. On average, those customers spent €193 on merchandize, up €17, or by 11 per cent from a year earlier.
