Zalando growth slows in fourth quarter

19 Jan, 2016


BERLIN: Europe's biggest dedicated online fashion retailer Zalando reported that revenue growth slowed somewhat in the fourth quarter from the blistering pace of the previous three months in what it described as a challenging market.

Zalando said revenue rose 30-31 percent to 865-872 million euros ($940-947 million), down from a rate of 42 percent in the previous quarter. Adjusted earnings before interest and tax (EBIT) should come in at 61-78 million euros. Average analyst forecasts were for 883 million and 73 million respectively.

Zalando, which is due to report full quarterly results on March 1, saw its shares slide last week after it wrote to analysts to say it could not completely decouple itself from a weak fashion sector hit by unseasonably mild weather.

Launched in Berlin in 2008, Zalando competes with the likes of Britain's ASOS and serves customers in 15 European markets with over 1,500 brands, including big names like Gap , Banana Republic and Topshop added in the last year.

Copyright Reuters, 2016

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