Half-Year Trading Update: Zalando Continues to Invest for Growth

• HY revenues at EUR 2,071-2,089 million (21-22% growth), adjusted EBIT at EUR 100-106 (4.8-5.1% margin)
• Q2 revenues at EUR 1,091-1,109 million (19-21%), adjusted EBIT at EUR 80-86 million (7.3-7.8% margin)
• Zalando launches membership program Zalando Zet to offer customized premium services

Zalando SE, Europe’s leading online platform for fashion, grew revenues in the first half of 2017 by 21-22% to EUR 2,071-2,089 million (HY 2016: EUR 1,713 million), according to preliminary figures. The adjusted EBIT for the first half-year 2017 is expected to come in at EUR 100-106 million, a margin of around 4.8-5.1% (HY 2016: EUR 101 million or 5.9%).

In the second quarter of 2017 the company achieved revenues of EUR 1,091-1,109 million (Q2 2016: EUR 916 million), growing by 19-21%. Zalando achieved an adjusted EBIT of EUR 80-86 million, corresponding to an adjusted EBIT margin of 7.3-7.8% (Q2 2016: EUR 81 million or 8.8%) for the same period.

Co-CEO Rubin Ritter said: “We are pleased with the performance in the first half of 2017 and continue to invest in order to meet our ambitious growth targets for the full year and beyond. In the fast-growing online segment, we continue to outperform the market and deliver on our 20-25% growth corridor. Our investments, for example in our fulfillment capabilities and the launch of our membership program Zalando Zet, are the cornerstones for future growth.”

Zalando Zet is a new program that offers customized premium services like faster delivery, including same day, pick-up of returns on demand as well as additional benefits such as personal fashion advice or early access to sales. In the first phase customers in four German cities (Berlin, Leipzig, Frankfurt, Hannover) will be able to test the service for three months, after which they can become members for EUR 19 per year.

Zalando Zet is another example of the company’s continued customer focus: In 2008, Zalando revolutionized online shopping by introducing free delivery and returns within up to 100 days. Trying on goods at home as well as free shipping and convenient returns have been an integral part of Zalando’s offering ever since.

All figures reported herein are preliminary, full financial disclosure for the second quarter 2017 will be published on August 10, 2017.

ABOUT ZALANDO
Zalando is Europe’s leading online fashion platform for women, men and children. We offer our customers a one-stop, convenient shopping experience with an extensive selection of fashion articles including shoes, apparel and accessories, with free delivery and returns. Our assortment of almost 2,000 international brands ranges from popular global brands, fast fashion and local brands, and is complemented by our private label products. Our localized offering addresses the distinct preferences of our customers in each of the 15 European markets we serve: Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland, Poland and the United Kingdom. Our logistics network with four centrally located fulfillment centers in Germany allows us to efficiently serve our customers throughout Europe, supported by warehouses in Northern Italy and France with a focus on local customer needs. We believe that our integration of fashion, operations and online technology give us the capability to deliver a compelling value proposition to both our customers and fashion brand partners. Zalando’s shops attract over 200 million visits per month. In the first quarter of 2017, more than 68 percent of traffic came from mobile devices, resulting in 20.4 million active customers by the end of the quarter.