Berlin-based fashion e-tailer Zalando warned it may post a loss in the third quarter amid plans to expand it business model beyond fashion.
In a trading update published today (18 October), Zalando said it expects to achieve an adjusted EBIT of anywhere from a EUR5m loss to a EUR5m gain. This compares to earnings of EUR20m in the year-ago period and a margin of 2.3%.
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For the same period, group revenues are expected to grow by between 27.5%-29.5% to a range of EUR1.06bn to EUR1.08m, according to preliminary figures.
Meanwhile, adjusted EBIT for the first nine months is expected to come in at between EUR97m and EUR107m, a margin of 3.1%-3.4%.
Revenues for the period are expected at between EUR3.15bn and EUR3.16bn, growing by 23.5%-24.1%.
“We continue to push forward with our growth strategy at full speed, winning market share,” said co-CEO Rubin Ritter. “Our results for the third quarter underline once again that our strong business expansion is driven by ongoing investments into our technology and logistics infrastructure, brand partner proposition and consumer experience.”
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By GlobalDataThe e-retailer, which will release full financial disclosure for the third quarter on 7 November, has also revealed it will enter the beauty market in spring of next year to supplement its current fashion assortment.
Last month, Zalando revealed it has developed a dedicated platform to help integrate startup technologies – including size and fit solutions – into its wider site as part of a bid to personalise shopping experience and “boost inspiration.”
Zalando Build platform to personalise shopping experience
