BERLIN — Buoyed by a strong fourth quarter, Zalando generated its first group profit in 2014, according to preliminary figures released late Wednesday.
The Berlin-based fashion and footwear e-tailer, which went public last October, reported operating profits (EBIT) reached 62 million euros, or $82.4 million, compared to a loss of 114 million euros, or $151.4 million, the year prior. The company trumpeted improved cost management in sales and marketing.
Dollar figures are converted from euros at an average exchange rate for the periods in question.
The group did not publish net earnings figures.
Group sales for the year rose 26 percent to 2.21 billion euros, or $2.94 billion. Sales in the fourth quarter rose 21 percent to 666 million euros, or $831.9 million.
For the year ahead, Zalando confirmed its 20-25 percent sales growth guidance. However, the company said that given investments in long-term growth, it does not except 2015 margins to exceed 2014 levels.
Zalando shares spiked 16 percent following the release of the preliminary figures and traded at 24.85 euros in the opening hour of Frankfurt’s electronic exchange Xetra Thursday morning. The share’s yearly high was 27.08 euros, but had slid to a low of 17.01 euros during its first five months of trading.
Zalando is to release final 2014 figures on March 5.