European online retailer Zalando has increased its full-year EBIT margin forecast to between 4% and 5.5% after a strong first in which it added new brands such as Club Monaco and Kate Spade to its line-up.
Revenues at the German based group hit €916m with an adjusted EBIT margin of 8.8% in Q2, this resulted in revenues of €1,713m in the first half of the year with an adjusted EBIT margin of 5.9%.
“We are very proud of our first half results: they reflect strong customer momentum with strong growth at scale. Despite ongoing investments into our long-term growth strategy, our business showed increased strength and profitability,” said Rubin Ritter, member of the Zalando management board.
During the first half, the company, which sells men’s, women’s and kids apparel, accessories and footwear, added a number of new labels to its line-up such as US brands Kate Spade and Club Monaco. It was also one of the retailers chosen to launch singer Beyoncé’s Ivy Park activewear line and it benefited further from celebrity fashion associations by signing up the Fenty by Rihanna label.
The Zalando group also owns Berlin-based streetwear and young fashion trade show Bread & Butter and is promising a number of interesting new product debuts at the 2-4 September event, including Italian luxury label Marni‘s footwear collaboration created exclusively for Zalando and Tommy Hilfiger’s “Tommy X Gigi” collaborative collection with model Gigi Hadid.
Mobile was also a strong point in the quarter and the company said downloads of its app had doubled in the past 12 months and app orders had grown by 90%. The number of active customers grew to a record 18.8m by the end of the second quarter, with average orders per active customer reaching an all-time high of 3.3 orders per annum.