Beauty Products Gloss Over Zalando Earnings Squeeze

BERLIN (Reuters) - Europe's biggest online fashion retailer Zalando ( ZALG.DE ) said the launch of beauty products in Germany had made a promising start and its active customer numbers jumped in the first quarter but a late start to spring hit profitability.

Unseasonally cold weather across Europe in March delayed sales of spring and summer fashions and prompted more discounting to shift stock, denting profits, co-Chief Executive Rubin Ritter told reporters.

But customers responded well to Zalando's move to sell 4,000 beauty products from 130 cosmetic and skin care brands online. Zalando's active customer numbers rose 17 percent to 24 million, while average orders per active customer also hit an all-time high.

Zalando shares, which were hit in March when it said heavy investment would dent profitability this year, were up 4.2 percent at 0744 GMT, making them the biggest gainer on the German mid-cap index .MDAX.

"We see an opportunity to build the leading beauty destination," Ritter said, noting that only about 5 percent of beauty products were currently sold online, compared to about 15 percent for the fashion industry.

He said that more than 70 percent of orders for beauty also included fashion garments. Zalando expects eventually to expand beauty products to other markets and also add male grooming ranges, Ritter said.

Quarterly sales rose 22 percent to 1.196 billion euros ($1.43 billion), slightly ahead of average analyst forecasts for 1.18 billion.

But adjusted earnings before interest and taxation (EBIT) fell to 0.4 million euros, falling short of forecasts for 11.5 million. Zalando's core German, Austria and Switzerland region compensated for a loss in the rest of Europe.

Ritter said Zalando would keep investing heavily in its logistics infrastructure and marketing, but declined to say to which two markets it plans to expand later this year.

British rival ASOS ( ASOS.L ) said last month it would also have to step up spending on technology and logistics to help maintain its lead in the online fashion pack, with the extra costs taking a toll on its elevated share price.

Zalando kept its forecast for around 20 to 25 percent reported sales growth for the year unchanged, along with its target of an adjusted EBIT of between 220 million and 270 million euros.

Beauty Products Gloss Over Zalando Earnings Squeeze 1

get in touch with us
empfohlene Artikel
Think Green Collection: Editors Choice 10 Best Images
Today weve chosen Pixabay 10 best green color images. Enjoy the green choice of our team.Green is the color of nature. It is associated with growth, harmony, freshness, and fertility. Green has strong emotional correspondence with safety. Dark green is also commonly associated with money.There lots of shades of green, natural and man-made. Check them all in our collection!Image by ju1959jjjGreen is the prime color of the world, and that from which its loveliness arises. Pedro Calderon de la Barca Image by SkitterphotoI just need green. I need to wake up and see grass and squirrels. I dont want to see skyscrapers. Andre Leon Talley Image by cegohI always say that candy is the perfect studio food it keeps your energy going. Nick Cannon Image by jeonsangoI believe a leaf of grass is no less than the journey-work of the stars. Walt Whitman Image by Free-PhotosIf there is a future, it will be Green. Petra Kelly Image by cocoparisienneDont be a fish; be a frog. Swim in the water and jump when you hit ground. Kim Young-ha Image by ulleoColorless green ideas sleep furiously. Noam Chomsky Image by jplenioFor in the true nature of things, if we rightly consider, every green tree is far more glorious than if it were made of gold and silver. Martin Luther Image by NietjuhWhen youre green, your growing. Ray Kroc Image by SkitterphotoNo object is mysterious. The mystery is your eye. Elizabeth Bowen All images and videos on Pixabay are released free of copyrights under Creative Commons CC0. You may download, modify, distribute, and use them royalty free for anything you like, even in commercial applications. Attribution is not required·RELATED QUESTIONI painted my bedroom a dark teal color and need some suggestions on color of bed set or accent colors?Turquoise or white would look great with teal
Where Can I Find Plastic Injection Molding Manufacturers in China?
How to Curl Your Hair Like This?
What Is Preventing the Solar Energy and Other Renewables to Replace the Oil?
What Matches This Formal Dress?
Why Does an Air Conditioner Sometimes Take so Much Time to Cool a Room?
Want to Play a Killer Video Game?
Netizens' Self Photographing Tutorial Reveals the Secret of "self Photographing Artifact" to Create
Are Hairy Legs Unattractive to Girls/women?
Is It a Good Idea to Cover Up Your Outdoor Air Conditioning Unit (compressor) with a Plastic Tarp fo
Verwandte Suchanfragen
10 Best Dressing Tables
All You Need Is Paleo
Why I Decided to Ditch Chemicals and Go Organic with My Hair Dye
I Test Tons of Beauty Products for Workand This Exfoliator Is Legit
Here Are All of the Best Beauty Products That Launched This Week
Think Green Collection: Editors Choice 10 Best Images
Where Can I Find Plastic Injection Molding Manufacturers in China?
How to Curl Your Hair Like This?
What Is Preventing the Solar Energy and Other Renewables to Replace the Oil?
Aminica Wigs are dedicated to providing top quality virgin human hair for large trader and wholesaler. Usually they resell it to the retailers then to customers, which results in high price that makes customers awe-stricken.
Contact Us

+86 020-22139352

If you have a question, please contact at contact

Copyright © 2021 Aminica humain Wigs |Sitemap