Executive Summary

• Zalando reported 3Q17 revenues of €1,074.7 million, up 28.7% year over year, and in line with the consensus estimate of €1,074.0 million. Adjusted EBIT came in at €0.4 million versus the consensus estimate of €3.2 million, corresponding to an adjusted EBIT margin of 0.0%.
• A one-million increase in the number active customers in 3Q17 and faster revenue growth in the DACH region helped drive up revenues in the quarter. At the same time, however, the company’s focus on investment in logistics and technology affected profitability.
• Due to a weaker-than-expected operating profit in 3Q17, Zalando revised its expectations for FY17 adjusted EBIT margin, to just under 5.0%.