Executive Summary

• Zalando reported revenue growth of 24.4% year over year to €1,712.6 million in 1H16, slightly below the consensus estimate of €1,715.7 million.
• The company reported 1H16 adjusted EBIT up 70.9% to €101.2 million and the   adjusted EBIT margin reached 5.9%, up from 4.3% in 1H15. Adjusted EBIT margin reached 8.8% in 2Q16 and expanded 470 bps from 4.1% in 2Q15.
• Zalando reiterated the company expects to deliver FY16 revenue growth at the upper end of the forecasted 20% to 25% revenue growth range, and adjusted FY16 EBIT margin to fall in the range of 4% to 5.5%.