European online fashion giant Zalando today announced earnings for the first quarter of the year, reporting €796 million in sales for the period, slightly missing industry forecasts as its profit fell compared to Q1 2015. The company's stock price went down a few points this morning as a result.
Zalando also announced its acquisition of Tradebyte, a German e-commerce specialty software firm, which it says will help the fashion e-tailer further expand the partner program that enables brands to directly sell on the Zalando platform.
In Q1 2016, Zalando's revenues increased by 23.7% to just south of €800 million, but adjusted EBIT of came in at €20.2 million, compared to €29.1 million in the first quarter of last year - a 30.5% drop.
Zalando reiterated its full-year guidance of revenue growth at the upper end of the 20-25% growth corridor and an adjusted EBIT margin of 3% to 4.5%. The company's full first-quarter report is available online; details can also be found in the earnings presentation.
Launched in Berlin in 2008, Zalando serves customers in 15 European markets with more than 1,500 brands, including the likes of Gap, Banana Republic and Topshop.