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Zalando moves into full-year profitability

German etailer Zalando has recorded its first annual group profit, with an adjusted EBIT of €82m (£61m), equivalent to a 3.7% margin – up from -6.2% in 2013.

Revenues grew by 26% to €2.2bn (£1.6bn) in 2014, according to preliminary figures.

In the fourth quarter of 2014, Zalando’s revenues grew by 21% to €666m (£495m). It achieved an adjusted EBIT of €66m (£49m), equivalent to a margin of 9.9% - up from 2.4% the year before. It said this marked a “new all-time high quarterly profit”, driven by a reduction in the cost of sales and marketing.

The etailer has confirmed that it expects revenues to grow by 20-25% in 2015. It does not expect margins to exceed those recorded in 2014.

Rubin Ritter, member of the management board, said: “Our 2014 performance proves that Zalando’s business model is sustainable and can achieve significant margins. It’s a great accomplishment by the team and a tremendous success for the company.

“Our focus in the coming years will be to make the right investments for continued long-term growth and value creation, and not to maximise our short-term margin.”

Zalando launched a dedicated UK flash Sales site, Zalando Lounge, in August.


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