Zalando with strong start into 2014

• Strong increase of first quarter group revenues, up 35 per cent to EUR 501 million
• Group EBIT margin improved significantly year-on-year
• Improvement mainly driven by higher fulfilment productivity, increased marketing efficiency and good start into spring/summer season

BERLIN, MAY 9, 2014 // Zalando, Europe’s leading online platform for fashion, has had a strong start to the year. Group revenues grew to EUR 501 million¹ or by 35 per cent compared to the first quarter in 2013 (Q1/2013: EUR 372 million), which was impacted by adverse weather conditions. Revenues in the DACH region increased by 27 per cent to EUR 284 million (Q1/2013: EUR 223 million). Group EBIT margin improved significantly year-on-year, but remained negative in the first quarter 2014 due to seasonality and continued investment. The improvement was mainly driven by higher fulfilment productivity, increased marketing efficiency and a good start into the spring/summer season.

“The start to the year has been promising, with a significant improvement in Q1 margin year-on-year, so we are on track with our plans for 2014,” said Rubin Ritter, Member of the Zalando Management Board. “The improvement in the first quarter underlines our plan to take a significant step towards, but not quite reaching, EBIT breakeven at group level for the full year 2014.” 

The extension units to the first self-designed fulfilment center in Erfurt have been completed in the first quarter of 2014, making Erfurt the largest e-commerce facility in Europe and resulting in higher fulfilment efficiency. The ramp-up of operations at the new fulfilment center in Mönchengladbach is ongoing and on track.

Zalando registered total visits of 332 million in the first quarter of 2014, compared to 275 million during Q1/2013. The push towards mobile devices has continued, with over 38 percent of traffic in Zalando online shops coming from mobile devices and tablets at the end of Q1/2014. Active customers grew to 13.5 million at the end of Q1/2014 compared to 10.3 million at the end of Q1/2013, which further improved marketing efficiency. Various onsite and process improvements like the roll-out of pick-up points in additional countries further improved the customer experience during Q1/2014; additional features like the internationalization of the Zalando mobile app are in the pipeline for the summer. 

According to final audited figures, EBIT margin for 2013 improved by 0.7 per cent (0.5 per cent according to preliminary figures) to minus 6.5 per cent from minus 7.2 per cent in 2012.

ABOUT ZALANDO

Zalando is Europe’s leading online retailer for shoes and fashion. 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 a 100 day 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.