The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
BERLIN, Germany — Online apparel retailer Zalando SE raised its full-year forecast after it made an unexpected profit before interest and tax in the third quarter.
Zalando said the operating margin should be 5 percent to 6 percent in 2016 in a statement released late Tuesday, compared with a previous range of 4 percent to 5.5 percent. Earnings before interest and tax were €8 million ($8.8 million) to €25 million in the third quarter, while analysts expected a loss of €12 million.
“In the third quarter we outperformed a sluggish fashion market and improved our profitability significantly, allowing us to increase our guidance,” co-chief executive officer Rubin Ritter said in the statement.
Zalando, which sells fashions from Adidas retro-'90s Gazelle trainers to $800 a-line skirts from Zac Posen, has been benefiting from consumers favouring its site and mobile app and adding fashion categories that resonate with consumers, said Charles Allen, an analyst at Bloomberg Intelligence.
ADVERTISEMENT
Third-quarter sales rose 16 percent to 18 percent, Zalando said. The company plans to report full third-quarter results on Nov. 10.
By Aaron Ricadela; editors Matthew Boyle and Thomas Mulier.
From analysis of the global fashion and beauty industries to career and personal advice, BoF’s founder and CEO, Imran Amed, will be answering your questions on Sunday, February 18, 2024 during London Fashion Week.
The State of Fashion 2024 breaks down the 10 themes that will define the industry in the year ahead.
Imran Amed reviews the most important fashion stories of the year and shares his predictions on what this means for the industry in 2024.
After three days of inspiring talks, guests closed out BoF’s gathering for big thinkers with a black tie gala followed by an intimate performance from Rita Ora — guest starring Billy Porter.