Fashion etailer Zalando expects to make a profit this year after breaking even during the third quarter for the first time.
Zalando, which listed earlier this year in Frankfurt, said improved operating efficiencies and execution helped it generate an adjusted EBIT margin of 0.8% in the third quarter, when sales climbed by 24.2% to €501m.
Sales at Zalando in the third quarter
Zalando management board member Rubin Ritter said: “Zalando’s revenue growth continued to outpace the overall online fashion industry, which faced a difficult start to the fall/winter season due to unseasonably mild weather.
“Reviewing our successful development in the third quarter we expect to reach slight group EBIT profitability for the full year.”
During the third quarter Zalando launched Topshop on its site and rolled out express delivery across all the markets it operates in, which include the UK.
Zalando is to introduce fashion retailer Gap to its site for spring/summer 2015. It will be the first time Gap has sold in a multibrand environment, either online or in-store.
Zalando reported that mobile accounted for 43% of traffic in the third quarter.
Its number of active customers increased by 15% to 14.1 million, and gross merchandise volume per active customer rose by 12%.
Zalando websites registered 322 million visits altogether in the third quarter.