Executive Summary

• Zalando reported FY16 revenue growth of 23.0% year over year to €3,639.0 million, slightly below the consensus estimate of €3,649.5 million.
• The company reported FY16 adjusted EBIT of €216.3 million and the adjusted EBIT margin reached 5.9%, up from 3.6% in FY15. For 4Q16, the adjusted EBIT margin reached 8.8%, expanding 50 bps from 8.3% in 4Q15.
• Zalando issued FY17 guidance to deliver year-over-year revenue growth in the range of 20.0%–25.0%, in line with FY16. The company expects the FY17 adjusted EBIT margin to fall between 5.0% and 6.0%.