Zalando: raises 2020 outlook after quarterly revenue surges

(CercleFinance.com) - Zalando, Europe's biggest online fashion retailer, said late on Thursday that it has raised its outlook for 2020 on the back of a "strong" third quarter.


The Berlin-based company now expects its revenues to grow 20-22% this year, with an adjusted earnings before interest and tax (EBIT) of 375-425 million euros.

In its previous outlook published in July, Zalando said it expected revenue to grow between 15% and 20% in 2020, with an adjusted EBIT of 250-300 million euros.

According to preliminary figures, Zalando saw its revenues rise by 20-23% to 1.83-1.87 billion euros in the third quarter, with an adjusted EBIT expected between 100-130 million euros, compared to 6.3 million euros one year ago.

The Frankfurt-listed shares were up over 4% on the news on Friday morning.

"The strong EBIT guidance, partly boosted by a lower return rate and reversal of the write-down of inventories, also reflects the significant operating leverage the group can achieve on a well-invested logistics infrastructure", said analysts at Liberum, who have a "buy" rating on the stock.

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