Zalando (XTRA: ZAL) FY17 Results: Price Pressures and Higher Fulfillment Costs Weigh on Margins

Executive Summary

• In FY17, Zalando grew revenues by 23.4%, toward the upper end of the guided range. It grew gross merchandise volumes (GMV) by 26.5%.
• Price competition in some European markets, coupled with higher fulfillment costs, depressed margins.
• Net profit fell by 15.7% versus analyst estimates of a 2% increase.