Berlin-based etailer Zalando has said its full-year revenue growth is likely to come in at the upper end of expectations, after confirming its first half revenue rose 21.5% to €2.08bn (£1.82bn).
Revenue grew by 20.1% to €1.1bn (£995m) in the second quarter, driven by a growing customer base and an increase in the number of average orders to 3.7 times per year.
Adjusted EBIT remained at last year’s level of €102m (£92.2m) for the half year.
Zalando expects full-year revenue growth of between 20% and 25%. It predicts adjusted EBIT margin will fall in the lower range of 5%-6%.
The etailer plans to expand its European fulfilment network by opening new fulfilment centres in Italy and in Gryfino, Poland. Construction will start in the third quarter of 2017 and is expected to last several months.
Co-CEO Rubin Ritter said: “We firmly believe that growth is the right strategy to increase the value of our business. Our updated guidance reflects our focus on growth at solid profitability levels. It is in our DNA to continuously evaluate additional investment opportunities, test ideas, and then start scaling them.”
Zalando partnered with Danish brand house Bestseller in July this year to expand fashion wholesale marketplace Fashiontrade.com, which is now owned equally by the two businesses.
The partnership aims to digitalise the wholesale buying process, Zalando’s vice president of direct to consumer, Carsten Keller, told Drapers earlier this year.