Europe’s biggest online fashion retailer, Zalando, has reported promising second-quarter results and a record number of orders in a single quarter.
Its revenue increased in the second quarter by 20.9% year on year, to €1.33bn (£1.2bn). Adjusted EBIT was €94m (£84m).
Zalando still forecasts overall growth for the 2018 financial year to be in the lower half of the 20%-25% target range and adjusted EBIT of €220-270m (£197-£241m). In the first half of the year overall, revenues grew by 21.4% to €2.5bn (£2.2bn).
Between the months of April and June, Zalando also reported 29 million orders, the highest number in any one quarter, from 24.6 million active customers (an increase of 15.9%).
The results are slightly short of analyst forecasts, which had a knock-on effect on Zalando’s shares when the market opened on Tuesday morning.
Zalando co-CEO Rubin Ritter acknowledged the fashion market continues to be challenging, but added “the strong development in customer KPIs [key performance indicators] shows that our engine is running extremely well”.
The etailer has just opened its first physical store in Berlin, dedicated to beauty, and also launched online fashion stores in Ireland and the Czech Republic in the second quarter of 2018. It is now present in 17 European countries.