Insight Report 3 minutes PremiumZalando [XTRA: ZAL] 3Q16 TRADING RESULTS: STRONG REVENUE AND PROFITABILITY GROWTH Coresight Research November 11, 2016 Executive Summary Zalando reported 3Q16 revenue growth of 17.1% year over year to €834.8 million, slightly below the consensus estimate of €844.3 million. Revenues in the Germany, Austria and Switzerland division increased 9.7% to €407.1 million and the Rest of Europe region posted year-over-year sales growth of 24.3% to 374.0 million. The gross margin expanded 80 basis points (bps) year over year to 41.4% and SG&A margin declined 480bps to 39.1%. The company reported 3Q16 adjusted EBIT of €19.5 million, corresponding to an adjusted EBIT margin of 2.3%. This marks a clear year-over-year improvement, as Zalando reported an adjusted EBIT decline of €23.5 million and EBIT margin of (3.3)% in 3Q15. Diluted EPS increased to €0.02 in 3Q16 from €(0.12) in 3Q15. Management reiterated that the company expects to deliver FY16 revenue growth at the upper end of its forecast 20.0-25.0% revenue growth range. Zalando expects adjusted FY16 EBIT margin to come in at 5.0-6.0%, a clear improvement from the 3.6% EBIT margin in FY15. This report is for paying subscribers only. Already a paying subscriber? Please log in to see the entire report.If you wish to learn more about our subscription plans and become a paying subscriber, click here. This document was generated for Other research you may be interested in: November 2023 Leading Indicators of US Retail Sales: Projecting Low-Single-Digit Growth for the New YearSigns of a Holiday Spending Ramp-Up Emerge: US Consumer Survey Insights 2023, Week 45Amazon Apparel US Consumer Survey 2023—Infographic: Understanding Amazon Fashion and Why Consumers Choose ItE-Commerce Outlook: US Department Stores—Digital Slows as Consumers Shop in Stores