A Zalando fulfillment center.

BERLINZalando continued to grow sales in the second quarter, but ongoing investments weighed on profits, the company said.

In final figures released on Thursday, it reported adjusted earnings before interest and taxes of 82 million euros, corresponding to an adjusted EBIT margin of 7.4 percent. This compares to an adjusted EBIT of 81 million euros and a margin of 8.8 percent for the same prior-year period.

Sales rose 20.1 percent to 1.1 billion euros from 916 million euros for the second quarter of 2016.

For the first half of 2017, adjusted EBIT amounted to 102 million euros, compared to 101 million euros for the same period in 2016, with an adjusted EBIT margin of 4.9 percent against 5.9 percent for the previous year. In terms of sales, Zalando said it met targets with turnover up 21.5 percent growth to 2.08 billion euros.

RELATED STORY: Investments Subdue Zalando Operative Earnings in Q2 >>

“It is in our DNA to continuously evaluate additional investment opportunities, test ideas, and then start scaling them. This can range from assortment additions to our recently launched customer loyalty program Zalando Zet,” said co-chief executive officer Rubin Ritter, adding that the company consciously trades in short-term profitability for long-term gains.

As part of their strategy to enhance fulfillment capabilities, the e-tailer announced two additional logistics spokes in Poland and Italy, slated to open in the fourth quarter. Zalando is also pushing further into the business-to-business segment. Earlier this year, the online platform announced a joint venture with Danish company Bestseller United in order to support the wholesale marketplace Fashiontrade.com.

Ritter also cited potential expansions into new fashion-related categories and geographies as growth opportunities, but specifics remain undisclosed.

RELATED STORY: Zalando Grows Net Income, Sales in Q1 >>

load comments
blog comments powered by Disqus