First quarter ending March 31. Source: Company reports

1Q16 RESULTS

In preliminary results for 1Q16, Zalando, a Germany based online fashion retailer, reported revenue growth in the range of 22.5% to 24.5%. 1Q16 revenues will come in at between €788 million and €801 million, below the consensus estimate of €838 million. Zalando expects to achieve adjusted EBIT for the period within the range of €12 million to €28 million, corresponding to an adjusted EBIT margin of 1.5% to 3.5%, and down from a 4.5% margin in 1Q15. Analysts forecast EBIT for the period of €26.2 million and an EBIT margin of 3.1%. The company’s management commented that Zalando started the fiscal year well despite the typical slower Easter holiday period at the end of 1Q16, and that the company is on track to deliver strong growth and profitability for the fiscal year. Full financial disclosure for 1Q16 will be published on May 12, 2016.

GUIDANCE

Zalando expects to deliver 20-25% revenue growth and an adjusted EBIT margin of 3.0% to 4.5% during FY16. Analysts estimate that the company will generate €3.7 billion in revenue—a year over year increase of 26.5%—and an EBIT margin of 3.8% in FY16.