Group revenue at Berlin-based etailer Zalando jumped 27.5% to €1.64bn (£1.4bn) in the third quarter of 2017.
However, adjusted EBIT for the same period dropped and is now expected to fall somewhere between a loss of €5m (£4.5m) and a profit of €5m.
The etailer also revealed plans to enter the beauty market for the first time in spring next year. Zalando will first introduce cosmetics, fragrances and skincare in its domestic German market, before ramping up and launching into international markets.
It will open a beauty concept store in Berlin, which will be used to host events, product launches and offer tutorials. It remained tight lipped on which beauty brands the website and store will offer, saying it was still in negotiations.
A wave of clothing retailers, including Asos, Inditex’s Pull & Bear, Boohoo and Missguided, have all launched their own make-up and beauty ranges over the past year.
Joint Zalando CEO, Rubin Ritter, said: “Our results for the third quarter underline once again that our strong business expansion is driven by ongoing investments into our technology and logistics infrastructure, brand partner proposition and consumer experience. The expansion into the beauty market is a natural next step and reflects the demand of our customers.”