Zalando Says Revenue Growth May Surpass Upper End of TargetAaron Ricadela
Zalando SE said sales growth this year may exceed the company’s forecast after the German online fashion retailer posted a second straight quarterly profit.
Revenue growth will be at the upper end of the 20 percent to 25 percent range, or slightly above, Zalando said Tuesday. First-quarter earnings before interest and taxes and adjusted for stock-based compensation were 29 million euros ($32 million), compared with a 23 million-euro year-earlier loss.
Shares of Zalando, which combines online shopping with fashion magazine-style features, have risen about 30 percent since they began trading in October. The online purveyor is backed by German Internet impresario Oliver Samwer and aggressively hires software developers to keep its site humming and tailor offerings to shoppers.
“We are optimistic about the remainder of the year,” Rubin Ritter, a board member, said in the statement, adding the company will expand more abroad. The company said it expects a operating margin of 4.5 percent this year, compared with a previous forecast for about last year’s level of 3.7 percent.
The stock traded little changed at 28 euros as of 9:06 a.m. in Frankfurt.
First-quarter revenue advanced 29 percent to 643.6 million euros.
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