Online fashion giant Zalando was profitable in 2014 on revenues of €2.2 billion; 26% growth year-over-year

European online fashion e-commerce powerhouse Zalando has announced its preliminary financial results for Q4 and full-year 2014. Zalando managed to grow revenues by about 26 percent last year to €2.2 billion (2013: €1.8 billion).

In the fourth quarter of 2014, group revenues grew by about 21 percent to €666 million (Q4 2013: €550 million), entirely coincidentally also the number of the beast.

In Q4 2014, Zalando also hit an adjusted EBIT margin of just under 10 percent, marking a new all-time high quarterly profit for the Berlin-based company (though not unexpectedly). More importantly, Zalando achieved its first ever annual group profit in 2014 with an adjusted EBIT margin of 3.7 percent.

Zalando went public in October 2014 at a market value of about €5.3 billion.

“Our 2014 performance proves that Zalando’s business model is sustainable and can achieve significant margins. It’s a great accomplishment by the team and a tremendous success for the company,” said Rubin Ritter, member of Zalando's Management Board in a statement.

“Our focus in the coming years will be to make the right investments for continued long-term growth and value creation, and not to maximize our short-term margin.”

**Also read:** An inside look at Sweden’s Kinnevik, the money behind Zalando and Rocket Internet

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