German fashion etailer Zalando is getting closer to breaking even as sales growth slowed slightly in the first quarter of 2014.
Sales rose 25% to €501m (£409m) in the three months to March 31, down from the 36% growth rate in the previous quarter.
Zalando’s EBIT margin improved “significantly” for the period driven by higher productivity, increased marketing efficiency and a good start to the spring season.
Rubin Ritter, Zalando co-founder, said the improvement underlies the company’s plans to take “a significant step towards, but not quite reaching, EBIT breakeven at group level for the full year”.
In February Zalando lined up Goldman Sachs, JP Morgan and Morgan Stanley to advise it on what is expected to be Europe’s biggest internet IPO, valuing the Berlin-based etailer at more than €5bn (£4bn).