Zalando targets first year of profits

zalando_vor_boerse_packete_grossBased on its third quarter results, Zalando is eyeing its first profitable year since it was founded. The Berlin-based sports, fashion and shoe retailer improved sales by 24.2 percent over the previous year’s period to €501 million. Turnover outside German-speaking countries soared by 39.9 percent to €198 million.

For the first time ever in a third quarter, the group was profitable with a profit margin (Ebit) of 0.8 percent compared with -12.4 percent last year. Free cash flow was €80 million. The retailer which went public on Oct. 1 explains the success due to continued cost efficiency in combination with strong sales growth. For the entire financial year, the management expects a slightly positive income.

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