Germany’s Zalando SE is performing above expectations. In preliminary figures released late Tuesday, the e-tailer said it anticipated third-quarter adjusted earnings before interest and taxes between 8 and 25 million euros, ($8.9 million and 27.9 million) and an adjusted EBIT margin of 1 to 3 percent for the period. Sales for the three-month period ended September 30 grew 16 to 18 percent to 827 to 841 million euros ($922.9 million to $939 million), lagging behind the second quarter’s 25 percent uptick.
Dollar figures are calculated at average exchange for the period.
The firm also boosted its full-year projected operating margin to between 5 and 6 percent, an improvement from the previously forecast range of 4 to 5.5 percent. Zalando confirmed its already reported estimate of fiscal year sales growth at the high end of 20 to 25 percent.
The news boosted the online fashion seller’s stock more than 5 percent; analysts had reportedly expected a loss.
“In the third quarter we outperformed a sluggish fashion market and improved our profitability significantly, allowing us to increase our guidance for the full-year EBIT margin,” commented Zalando’s cochief executive officer Rubin Ritter. “We remain on track to reach our targeted revenue growth for the full year. This proves again our ability to find the adequate trade-off between growth and margin, depending on market conditions,” he said.
Final figures for the third quarter will be released Nov. 10.