• Revenues up 17.1% to EUR835m (US$911.4m)
  • Adjusted group EBIT of EUR19.5m
  • New satellite warehouse near Paris planned for 2017

Berlin-based fashion e-tailer Zalando revealed earnings that beat expectations in its third-quarter, with revenues also up, despite what it called "challenging market conditions" and a strong comparison on last year.

Adjusted group EBIT amounted to EUR19.5m (US$21.2m) in the three month period, from an EBIT loss of EUR23.5m a year earlier. More efficient logistics and marketing helped Zalando report a stronger-than-expected third-quarter EBIT margin of 2.3%.

Meanwhile, sales were up 17.1% to EUR835m (US$911.4m), but showed a slow down from growth of 42.2% last quarter. 

"It's amazing to see that two years after our IPO, Zalando continues to go from strength to strength," said Rubin Ritter, co-CEO. "We have built a strong platform for ongoing progress and an exciting 2017."

Zalando continued to improve its mobile offering in the third quarter, with mobile traffic share increasing to 67%, while the share of mobile orders surpassed 50%. 

The retailer confirmed its growth ambition for the next few years of 20-25%. For 2016, Zalando expects revenue growth to come in towards the higher end of the 20-25% growth corridor, and increased full-year adjusted EBIT margin guidance for 2016 of 5%-6%.

Following the launch of its Italian satellite warehouse, which now fulfills 70% of Italian orders, Zalando revealed it will start operations at another satellite warehouse close to Paris, France, in the first quarter of 2017.

The company also announced the construction of another large-scale fulfillment centre close to Szczecin, Poland. It will cover 130,000 sq m and is expected to start manual operations in autumn 2017.