What is autumn and spring sales

Zalando with less sales and profits : No "cry for happiness"

If the winter was still too warm at the beginning, spring was a long time coming, so few people wanted to buy lighter clothes in the first quarter - online fashion retailer Zalando also felt this: sales and profits grew less strongly in the first three months of 2016 than in the same period last year. It's not just the weather to blame.

"Low sales rate" of the autumn and winter collections

Zalando announced on Thursday that sales increased by 23.7 percent to 796 million euros in the first quarter. In the same period of the previous year, revenues had grown by 29 percent. The adjusted operating profit before interest and taxes (EBIT) fell from 29.1 million euros in the same quarter of the previous year to 20.2 million euros.

Mild January and cold March resulted in a “low sales rate” for the autumn and winter collections, which in turn led to discounts and a “slower start” to the spring and summer seasons, explained board member Rubin Ritter The high investments in Zalando's long -term platform strategy and growth plan are responsible for the decline in sales and profits. The company is building additional logistics centers, including in Bavaria. The first international logistics center was recently opened in Stradella, Italy.

Zalando serves 18 million customers

Zalando wants to serve its around 18 million customers - 15 million in 2015 - faster in the future. In Berlin, the delivery of selected goods is currently being tested on the same day they are ordered. But the competition is also getting faster: Amazon has been delivering certain products within an hour since Wednesday.

Delivery on the first day

Zalando also wants to grow further thanks to new acquisitions and partnerships, especially with tech companies. At the beginning of May, the company bought the Ansbach-based tech company Tradebyte Software for an undisclosed amount.

Investors on the stock market were disappointed. The Zalando share collapsed at times by more than six percent. However, Zalando is sticking to its annual sales forecast of up to 25 percent. In 2015 it was 34 percent.

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