Zalando Profitable in Q2 2014

• First half-year revenues of more than EUR 1 billion
• First half-year group EBIT around break-even
• Reflects progress along all major cost lines

BERLIN, JULY 18, 2014 – Zalando continued to grow strongly in the second quarter of 2014, reaching group revenues of EUR 1,020-1,060 million in the first half-year 2014 (first half-year 2013: EUR 809 million) according to preliminary figures. The favorable trend towards break-even observed in Q1 2014 accelerated, leading to a profitable Q2 at group level and a first half-year group EBIT margin around break-even (compared to -9% in first half-year 2013). The significant margin improvement was driven by all major cost line items, including cost of sales, fulfilment and marketing.

“The development in Q2 is very positive, as it combines continued strong growth with a very significant improvement in margin. Based on this development we reiterate our plan to take a significant step towards, but not quite reaching, EBIT break-even at group level for the full year 2014,” said Rubin Ritter, Member of the Management Board.

In the second quarter of 2014, group revenues amounted to EUR 520-560 million (Q2 2013: EUR 437 million). Operational highlights include the ongoing and on-track ramp-up of operations at the fulfilment center in Mönchengladbach and the successful roll-out of the mobile app across all international markets, resulting in a mobile traffic share of 41% during Q2 and over 3.8 million app downloads by the end of Q2.

Zalando will report in more detail on Q2 and first half-year figures at the end of August 2014.

ABOUT ZALANDO
Working with over 1,500 international brands, Zalando (www.zalando.com) presents an extensive selection of products for women, men and children, ranging from popular high street brands to much sought-after designer labels. Exclusive accessories and sportswear make up Zalando’s wide range of products. A combination of unique services – free delivery and returns, a free service helpline and an extended returns policy – make online shopping at Zalando a convenient and secure online experience. The company was founded by Robert Gentz and David Schneider in 2008 and its headquarters are located in Berlin. Following its success in Germany, Zalando launched an Austrian site in 2009 and shops for the Netherlands and France followed in 2010. In 2011 Zalando expanded to Italy, the UK and to Switzerland. Since 2012 Zalando has also been available in Sweden, Belgium, Spain, Denmark, Finland, Poland, and Norway. Deliveries were extended to Luxembourg in 2013.