Zalando (XTRA: ZAL) 3Q17 Trading Update: Strong Sales Growth, but Declining Profit Margins Due to Growth Investments

Executive Summary

• Zalando expects to report 3Q17 revenues of €1,064–€1,081 million, according to preliminary figures, representing growth of 27.5%–29.5% year over year.
• The company expects to achieve 3Q17 adjusted EBIT of €(5.0)–€5.0 million, corresponding to an adjusted EBIT margin of (0.5)%–0.5%.
• The company will report full and detailed 3Q17 results on November 7, 2017.
• Zalando will enter the beauty market in spring 2018 to tap into the online beauty shopping opportunity in Europe and complement its fashion assortment.