• Zalando full-year sales up 23% to €3.64bn
  • Adjusted EBIT up 101% year-on-year to €216m, with 5.9% margin
  • Etailer to acquire multichannel basketball retailer Kickz
  • 2017 guidance in line with expectations

German fashion etailer Zalando has doubled its profits and sent sales soaring in its full year to December 31, 2016.

It unveiled a 101% jump in adjusted EBIT to €216m, compared with €107.5m in 2015.

The etailer put this leap in profitability down to “improved cost management and general efficiency improvements”.

Sales grew 23% to €3.639bn during the period following, “a systematic focus on consumers and suppliers, as well as further investments into the company’s infrastructure”, it said.

Its customer numbers increased 11% to around 20 million, and profit margins grew from 3.6% in 2015 to 5.9% in 2016.

Kickz acquisition

Zalando said it has agreed to acquire Munich-based business Kickz – a multi-channel basketball retailer – in order to strengthen its sports and lifestyle division.

The transaction is subject to merger control clearance by German and Austrian competition authorities and is expected to close in the first half of 2017.

No financial details were disclosed.

Zalando co-chief executive Rubin Ritter said: “Strong growth requires nonstop investment. We are proud to have significantly progressed in expanding our business profitably.

“As we build the technology and operating system to transform the European fashion industry, we will further invest into a unique and flawless consumer experience and a stronger supplier proposition to continue to drive growth ahead of the market.

“At the same time, we plan to expand our team by creating more than 2,000 new jobs this year.”

The etailer expects to “outperform the fashion retail market again” in 2017 and grow revenues in a range of 20-25% with a margin between 5 and 6%.

Zalando broke through the €1bn sales barrier in its fourth quarter as revenue jumped 25%-26%.