BERLIN — Powered by the strongest first quarter in the company’s history, Zalando has raised its full-year guidance for 2015.
In final figures released today, Europe’s largest fashion and footwear online retailer reported net income of 24.3 million euros, or $27.4 million, in the first quarter of 2015, compared to a net loss of 28.9 million euros, or $39.6 million, for the period a year previously.
Dollar figures are converted at average exchange for the periods in question.
RELATED CONTENT: WWD Earnings Tracker >>
Berlin-based Zalando, which first reached profitability at the end of 2014, generated earnings before interest and taxes (EBIT) of 25.1 million euros, or $28.3 million, compared to an operative loss of 27.9 million euros, or $38.5 million, a year previously.
Sales surged 28.5 percent to 644 million euros, or $726.9 million, exceeding the company’s expectations of 20 percent to 25 percent growth. It attributed the improved performance to a “considerably larger customer base, an increase in orders as well as a larger average basket size.”
The site gained 700,000 additional active customers in the first quarter, to reach a total of 15.4 million. Gross merchandise volume per customer increased by 11 percent to 193 euros, or $217.80.
Active in 15 European markets, Zalando said growth was particularly strong in international markets, which booked 37.1 percent gains, compared to its core DACH market — of Germany, Austria and Switzerland — where sales rose 22.3 percent.
On the basis of the strong quarter, Zalando now expects sales growth for the full year to come in at the higher end of its 20 percent to 25 percent corridor, “or slightly above if the momentum continues.” The group also raised its adjusted EBIT margin guidance to around 4.5 percent for the year given the better-than-expected first-quarter results.
The group has not slowed its investment activities and in April, opened its first technology outside of Germany, in Dublin, which aims to employ 200. After a trial run under the title Project Z, Zalando will launch Zalon, its curated shopping service, for its Germany-based customers tonight.