Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

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.

@KirstyMcGregor

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.