- Zalando fourth-quarter sales rise 30-31%
- Comes after warning analysts that sales were hit by warm weather
- Zalando predicts adjusted EBIT for full year to be between £73m and £87m
Online fashion retailer Zalando’s sales growth slowed during its fourth quarter, but bosses hailed continued “strong” performance.
The Berlin-based etailer reported a 30% to 31% increase in revenue from €666m (£506m) in the same quarter last year to between €865m (£657.1m) and €872m (£662.6m). Its third-quarter sales had jumped 42% to €713.1m (£541.9m).
Zalando expects to achieve adjusted EBITDA of between €61m (£46.4m) and €78m (£59.3m) for the three months to the end of December compared to €66m (£50.1m) last year. It said adjusted EBIT margin would be between 7% and 9%, falling from 9.9% in 2014.
The results come a week after Zalando warned analysts in a letter that the weak fashion sector, hit by unseasonably warm weather, had impacted sales in the final quarter of 2015.
Group revenue is expected to be between €2.95bn (£2.24bn) and €2.96bn (£2.25bn) for the full year, up from €2.2bn (£1.7bn) in 2014, but behind the €3bn the business had previously forecast.
Adjusted EBIT for 2015 is predicted to be between €96m (£73m) and €114m (£86.6m), against €81.9m (£62.2m) in 2014. Adjusted EBIT margin will be between 3.3% and 3.9%, compared to 3.7% last year. Zalando will reveal its full-year figures on March 1.
The etailer’s joint chief executive Rubin Ritter said: “We have finished the year on a high note. Our strong growth and EBIT margin performance in the fourth quarter, which is in line without prior guidance, demonstrates the strength of our business even in challenging market conditions.
“2015 has been a fantastic year for us. In our first year as public company, we have significantly accelerated growth, made important long-term, investments and remained clearly profitable. We will continue on this path.”