Zalando: strong on sales, but less so on profit

Berlin-based shoe fashion and sporting goods retailer Zalando had a successful second quarter – at least in terms of turnover. Preliminary figures say that total sales jumped by 33-35 percent to €727-738 million. The increase is by far higher than originally expected.

Margins dropped, however, compared with last year’s second quarter. The company confirmed that operational expenses were higher than one year ago. The profit margin is expected to be squeezed down to 3-5 percent, after it was at 6.4 percent last year. Pre-tax profit is possibly between €22-37 million after €35 million in the previous year’s period.

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