Executive Summary

• Zalando reported that it expects 4Q16 revenue to grow 25%–26% year over year to €1,086–€1,094 million, according to preliminary figures.
• The company expects to achieve 4Q16 adjusted EBIT of €81–€104 million, corresponding to an adjusted EBIT margin of 7.5%–9.5%.
• Management reiterated expectations of delivering FY16 year-over-year revenue growth of 22.9%–23.1%. Following clear profitability improvements, Zalando expects an adjusted FY16 EBIT margin of 5.6%–6.2%, up from 3.6% in FY15. The company will report full and detailed 4Q16 and FY16 results on March 1, 2017.