Zalando SE surged in Frankfurt trading after Europe’s largest online fashion retailer reported its first annual profit helped by lower sales and marketing costs.
While growth in Internet retailing has outpaced store-based sales gains in recent years, the mall is starting to reclaim some ground, data from researcher Euromonitor show.
Zalando SE traded above its initial public offering price for the first time since last month’s stock market debut after Europe’s largest online fashion retailer forecast it will end the year “slightly profitable.”
Though tens of millions of dollars of investment has poured into the space, fashion recognition apps have yet to fulfill their original promise.
Rocket Internet AG, the German company known for replicating businesses from Groupon Inc. to Airbnb Inc., fell on its first day of trading after completing the biggest initial public offering in Germany since 2007.
Zalando SE surged as much as 14 percent on its trading debut in Frankfurt, as Europe’s largest online fashion retailer kicked off the biggest week in German technology stock sales in a decade.
Rocket Internet AG, which has copied business models from Airbnb Inc. to Birchbox Inc., plans to raise 750 million euros ($970 million) in one of Europe’s most anticipated technology initial public offerings this year.
Investment AB Kinnevik and Rocket Internet AG, the e-commerce accelerator founded by Germany’s Samwer brothers, agreed to combine five online fashion businesses to create a global powerhouse.
Zalando SE, Europe’s largest online shoe and fashion retailer, plans to sell as much as 11 percent of its shares in an initial public offering this year, marking a coming of age for a Berlin-based startup industry that has yet to produce a big sale or IPO.
Zalando SE, Europe’s largest online shoe and fashion retailer, reported a second-quarter profit of 35 million euros ($46 million), giving investors more evidence the company is controlling costs ahead of a potential initial public offering.