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Zalando (XTRA: ZAL) FY16 Results: Stellar Sales and EBIT Margin Performance

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%.
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