Zalando lifts profit forecasts as site visits soar

BERLIN (Reuters) – Europe's biggest online fashion retailer, Zalando, reported Thursday its earnings outlook for the year, after posting strong growth in site visits and second-quarter orders .

Zalando has recently seen its profitability decrease, because it has invested heavily in logistics and technology to speed up deliveries. In addition, the average size of the orders having decreased, it sought to counteract various measures.

The number of active customers increased by 15% to 28.3 million in the second quarter in the 17 European markets of Zalando, while the number of visits to the sites jumped by more than a third, of which 84% via mobile devices.

The current result before interest and taxes (EBIT) amounted to 1.567 billion euros, up 20.1% for an amount of 112.71 million euros, while the average forecasts of the badysts were respectively 95 million and 1.6 billion euros.

It raised its adjusted EBIT outlook to the "upper half" of the previously defined range, which was between 175 and 225 million euros. He said that he expected revenue growth "close" to the lower end of a range of 20 to 25%, instead of "lower end".

Last month, its UK rival ASOS announced for the third time since December that its profits were jeopardized, noting that warehouse ramp-up problems in the United States and Germany had limited product availability sales and increasing costs.