Zalando With Strong Result in First Half-Year 2014

• Group revenues increased by 29.5 per cent versus previous year to EUR 1,047 million
• Positive group EBIT¹ margin of 1.2 per cent, DACH region clearly profitable with EBIT¹ margin of 4.6 per cent
• Margin improvement driven by all major cost lines

Berlin, August 28, 2014 – Zalando had a very successful first half of 2014. Group revenues grew by 29.5 per cent to EUR 1,047 million in the first six months (HY/2013: EUR 809 million), while revenues in the DACH region increased by 21.2 per cent to EUR 594 million (HY/2013: EUR 490 million). EBIT improved significantly, with a positive group EBIT  margin for the first half-year 2014 of 1.2 per cent (HY/2013: -8.9 per cent) and DACH continues to lead the way, reaching clear profitability of 4.6 per cent. The significant margin improvement was driven by all major cost line items, including cost of sales, fulfillment and marketing. Zalando confirms its preliminary figures released on July 18, 2014.

“Achieving a positive group EBIT margin in the first half-year is a major success for Zalando. Historically, our performance in the first half of any financial year tended to be weaker than in the second half,” said Rubin Ritter, Member of the Management Board.

The ramp-up of operations at the new fulfilment center in Mönchengladbach is on track and fulfillment efficiency has increased during the first half-year 2014. The Zalando mobile app has been rolled out successfully across all international markets, resulting in a mobile traffic share of 41 per cent during Q2 and over 3.8 million app downloads by the end of Q2. Zalando registered total visits of 323 million in the second quarter of 2014 (Q2/2013: 294 million). Active customers grew to 13.7 million at the end of Q2/2014, compared to 11.6 million at the end of Q2/2013, which further improved marketing efficiency.

Table 1: Zalando Group – Revenues and EBIT (EUR million)

ABOUT ZALANDO
Working with over 1,500 international brands, Zalando 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.

CONTACT
Sigrid Dalberg-Krajewski
Corporate Communications Manager Nordics
+49 152 56772051
Sigrid.Dalberg-Krajewski@zalando.se