4Q17 Trading Update

Zalando reported preliminary and unaudited 4Q17 results that show revenue growth of 21.2%–23.2% year over year, to €1,323–€1,345 million, versus the consensus estimate of €1,343 million. For 4Q17, the company expects to achieve adjusted EBIT of €107–€120 million, up from €95.6 million in 4Q16 and corresponding to an adjusted EBIT margin of 8.1%–8.9%. The consensus expectation is for adjusted EBIT of €112.2 million for 4Q17, implying an adjusted EBIT margin of 8.3%–8.5%.

FY17 Trading Update

Zalando expects to report FY17 revenues of about €4,478–€4,500 million, up 23.1%–23.7% year over year and in line with the company’s previous guidance. The consensus estimate calls for FY17 revenues of €4,497.7 million. The company expects adjusted EBIT for FY17 to be €209–€222 million, corresponding to an adjusted EBIT margin of 4.7%–4.9%. Consensus expects FY17 adjusted EBIT of €206.7 million, implying an adjusted EBIT margin of 4.6%.

Outlook

Management said that the company will continue to invest in FY18 to achieve strong market share gains. Zalando will report full 4Q17 and FY17 results, as well as issue FY18 guidance, on March 1.