BERLIN — Buoyed by strong second-quarter earnings and sales performance, Zalando has increased its earnings guidance.
In preliminary figures released Tuesday, the Berlin-based e-tailer said adjusted earnings before interest and taxes for the quarter ending June 30 is expected to reach 68 million euros to 88 million euros, or $76.8 million to $99.4 million, compared to 30 million euros, or $33.2 million, for the period a year previously. This corresponds to an adjusted EBIT margin of 7.5 percent to 9.5 percent, compared to 4.1 percent.
Dollar figures are converted at average exchange for the period to which they refer.
Second-quarter sales surged 24 percent to 26 percent to 909 million euros to 924 million euros, or $1.03 billion to 1.04 billion.
Zalando reiterated its full-year guidance for sales growth at the upper end of the 20-25 percent growth corridor, but has now increased its full-year adjusted EBIT margin guidance to 4 to 5.5 percent, up from 3 to 4.5 percent.
Rubin Ritter, a member of the management board, characterized the quarter as “very strong. We delivered on our ambitious growth target and saw our profitability increase substantially. The operating leverage of our business has developed strongly while we continue to push forward with growth investments into our customer proposition and platform initiatives.”
Final figures for the quarter and first six months are to be released on Aug. 11.