German e-tailer Zalando, the largest in Europe by sales, has seen another quarter of rapid growth, although profits took a hit.
Despite a sales rise of 33-35%, the e-tailer said that operating profit would come in lower than last year, with operating margin predicted to be 3-5% down from 6.4% on last year.
This was put down to “a temporary increase in payment costs”, which Zalando did not elaborate on, although it is thought that the company’s “bill me later” plan, under which customers pay via invoice, may be behind the fall.
Rubin Ritter, member of the management board, commented: “With these figures, Zalando continues to deliver a unique combination of growth at scale and profitability. Re-accelerating our growth close to 35% is an extraordinary achievement of our team.”
