Zalando H1 2017 results: revenues grew strongly by 21.5% to EUR 2,080.7 million

  • Half-year revenue up 21.5% to EUR 2,080.7 million, adjusted EBIT at prior year level of EUR 102.1 million, 4.9% margin
  • Second quarter revenue up 20.1% to EUR 1,100.5 million, adjusted EBIT at prior year level of EUR 81.8 million, 7.4% margin
  • Full-year revenue growth expected in upper half of 20-25% growth range, adjusted EBIT margin in lower half of 5-6% range
  • Expansion of European fulfillment footprint with further sites in Poland and Italy

BERLIN, 2017-Aug-11 — /EPR Retail News/ — Zalando grew revenues in the first half of 2017 strongly by 21.5% to EUR 2,080.7 million (HY 2016: EUR 1,712.6 million). Adjusted EBIT remained on prior year levels at EUR 102.1 million with a margin of 4.9% (HY 2016: 101.2 million, 5.9% margin). For the full year, Zalando expects revenue growth in the upper half of its guided range of 20-25% and an adjusted EBIT margin in the lower half of the 5-6% range.

As part of its continued growth initiatives, Zalando plans to expand its European fulfillment network with two large fulfillment centers in Poland and Italy. Zalando already operates sites of a similar size in Erfurt, Mönchengladbach and Lahr (Germany), and prepares to launch initial operations in Gryfino near Szczecin (Poland) in the third quarter of 2017. These are complemented by smaller fulfillment centers in Brieselang near Berlin, as well as localized warehouses in Stradella near Milan, Moissy-Cramayel near Paris, and by the end of the year in Brunna near Stockholm.

Co-CEO Rubin Ritter said: “We firmly believe that growth is the right strategy to increase the value of our business. Our updated guidance reflects our focus on growth at solid profitability levels. It is in our DNA to continuously evaluate additional investment opportunities, test ideas, and then start scaling them. This can range from assortment additions to our recently launched customer loyalty program Zalando Zet.”

Zalando strongly executed on its platform strategy during the past quarter: The company launched Zalando Fulfillment Solutions with Bestseller as first flagship partner, allowing fashion brands access to its logistics infrastructure and know-how. The transactions of Anatwine and KICKZ were closed in the second quarter. Anatwine is a software solution developer that enables fashion brands to sell merchandise on marketplaces.

With the addition of KICKZ, a multi-channel basketball retailer, Zalando strengthened its sports and lifestyle segment, especially in the area of basketball. The assortment was further expanded with Nike, Lacoste, Pepe Jeans and Esprit joining the Zalando Partner Program.

In the second quarter of 2017, revenues grew by 20.1% to EUR 1,100.5 million. Main drivers were a growing active customer base as well as an increase in average orders to 3.7 times per year, marking another all-time high and indicating strengthened customer loyalty. Active customers increased by approximately 800,000 to 21.2 million compared to the previous quarter, the strongest increase since the fourth quarter 2015.

Adjusted EBIT came in at prior year level of EUR 81.8 million or a margin of 7.4% (Q2 2016: EUR 80.9 million, 8.8% margin). A slightly lower gross margin and increased fulfillment cost could not be fully offset by improved marketing cost. The increase in fulfillment cost is primarily attributable to higher logistic costs, as Zalando continued with its convenience investments around fast delivery and returns, plus further ramp-up of capacity and automation at its various fulfillment sites.

Capital expenditure in the first half of 2017 was EUR 130 million, excluding M&A, reflecting investments primarily into infrastructure and in-house developed software. Zalando aims for about EUR 250 million in capital expenditure in 2017, excluding M&A.

Zalando’s half-year report and the earnings presentation for analysts and investors is available on the Zalando Investor Relations website. Zalando will report results for the third quarter 2017 on November 7, 2017, and publish a trading update prior to that. The publication date of the trading update will be announced in due time.

Zalando ( is Europe’s leading online fashion platform for women, men and children. We offer our customers a one-stop, convenient shopping experience with an extensive selection of fashion articles including shoes, apparel and accessories, with free delivery and returns. Our assortment of almost 2,000 international brands ranges from popular global brands, fast fashion and local brands, and is complemented by our private label products. Our localized offering addresses the distinct preferences of our customers in each of the 15 European markets we serve: Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland, Poland and the United Kingdom. Our logistics network with four centrally located fulfillment centers in Germany allows us to efficiently serve our customers throughout Europe, supported by warehouses in Northern Italy and France with a focus on local customer needs. We believe that our integration of fashion, operations and online technology give us the capability to deliver a compelling value proposition to both our customers and fashion brand partners. Zalando’s shops attract about 200 million visits per month. In the second quarter of 2017, 70 percent of traffic came from mobile devices, resulting in 21.2 million active customers by the end of the quarter.

René Gribnitz
Vice President Communications

Alexander Styles
Financial Communications
+49 30 20968 2022

Source: Zalando

PHILIPPINES: SM H1 2017 results: income grew 9% to PHP16.6 billion

Pasay City, Philippines, 2017-Aug-09 — /EPR Retail News/ — SM Investments Corporation (SM) said reported income grew 9% to PHP16.6 billion. Excluding one-time items in 2016, recurring income increased 16% in the first six months.

Consolidated revenues rose 7% to PHP181.6 billion in the first half from PHP169.7 billion in the same period last year.

“Even without the benefits of an election year, we saw sustained growth across all our core businesses, driven by the strong economy and resilient consumer sentiment. SM will continue to capture this momentum through nationwide expansion and by investing in high growth opportunities,” SM President Frederic DyBuncio said.

The property business contributed the most to consolidated net income at 42%. This was followed by banks with 36% and retail with 22%.

Outside of the core businesses, SM continues to build its portfolio of investments in complementary businesses that will help capture the high growth of the Philippine economy. Among its equity investments portfolio, Belle Corporation benefited from increased growth in the tourism sector, reporting consolidated net income growth of 93% to PHP1.8 billion.


SM Retail reported sustained growth in total sales of 6% to PHP131.6 billion, while net income rose 6% to PHP5.2 billion.

Net margin stood at 4.4%. At end-June 2017, SM Retail had a total of 2,357 stores, comprising 58 THE SM STORES, 1,709 specialty stores, 50 SM Supermarkets, 44 SM Hypermarkets, 170 Savemore stores, 41 WalterMart stores and 285 Alfamart stores.

The Food Retail Group pursued its aggressive expansion in both urban and rural communities nationwide, adding 15 mid-sized format Savemore stores, two SM Supermarkets and two WalterMart stores. Meanwhile, Alfamart increased its number of stores by 75 as of end-June from 210 at the start of the year.

THE SM STORE opened one store in SM CDO Downtown in Cagayan de Oro in May 2017. As of the first half, the total gross selling area of all 58 department stores stood at 760,000 square meters.

Revenues from SM Retail’s specialty retail stores grew 8% to PHP31.6 billion. Specialty retail brands include Ace Hardware, SM Appliance Center, Homeworld, Our Home, Toy Kingdom, Watsons, Kultura, Baby Company, Sports Central, Forever 21 and Body Shop.


SM Prime Holdings reported consolidated net income of PHP14.4 billion, up 14%. Consolidated revenues increased 10% to PHP43.2 billion from PHP39.2 billion in the same period last year.

Mall revenues, which consist of rentals, cinema and event ticket sales and amusement revenues, accounted for 60% of total revenues and rose 10% to PHP25.7 billion in 2017. Mall rental revenues alone grew 10% to PHP21.8 billion from additional retail space of 1.1 million square meters of gross floor area added since 2015.

During the first half of 2017, SM Prime opened SM CDO Downtown Premier in Cagayan de Oro, S Maison at Conrad Manila in Pasay City and SM Cherry in Antipolo, Rizal, bringing total Philippine operating malls to 63 with a GFA of almost 7.8 million sqm. Including the seven malls in China, SM Prime has a total GFA of 9.1 million sqm.

SM Prime’s residential group recorded 5% higher revenues of PHP13.9 billion in the period, which accounted for 32% of total revenues, largely due to higher construction accomplishments of SM Development Corporation (SMDC) projects that were launched since 2014. SMDC’s reservation sales surged 22% to PHP27.6 billion in the first half, translating to a 8% improvement in unit sales to 8,699 units.

The Commercial Properties Group, which contributed 3% of total revenues, posted a 14% increase in revenues to PHP1.5 billion.

Hotels and convention centers revenues soared 73% to PHP2.2 billion in the first half, largely from the opening of Conrad Manila in 2016.


BDO Unibank, Inc. (BDO) reported its first half net income at PHP13.3 billion driven by the growth in loan portfolio, low-cost deposits and higher recurring fee-based service income. Excluding one-time gains from the consolidation of BDO Life in 2016 recurring income in 2017 grew by 16%.

Net interest income grew 22% in the six-month period to PHP38.6 billion. Customer loans increased 17% to PHP1.6 trillion while total deposits rose to almost PHP2.0 trillion, supported by the 17% growth in current account and savings account (CASA) deposits.

China Banking Corporation reported net income growth of 10% to PHP3.6 billion for the first half, driven by strong growth in its lending business and core recurring income.

Net interest revenues grew 16% to PHP9.2 billion year-on-year. Gross loans expanded 22% year-on-year to PHP401.7 billion while total deposits grew 20% to PHP554.0 billion.

Balance Sheet

As of end-June 2017, total assets of SM grew 17% to PHP916.3 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 43% net debt to 57% equity.

SM increased its investments in its subsidiaries in the first half with the PHP60 billion stock rights issue of BDO in January 2017 and PHP15 billion for China Bank in May 2017, as well as its acquisition of stakes in logistics company 2GO Group and Philippines Urban Living Solutions, the operator of a dormitel chain under the brand, “MyTown”.

About SM Investments Corporation

SM Investments Corporation is a leading Philippine company that is invested in market leading businesses in retail, banking and property. It also invests in ventures that can capture high growth opportunities in the emerging Philippine economy. It looks for market leaders or those with potential to become leaders in their chosen sectors that offer synergies and attractive returns and cashflows.

SM’s retail operations are the country’s largest and most diversified with its food, non-food and specialty retail stores. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest bank and China Banking Corporation (China Bank), the 7th largest bank.

For more about SM, click here:

For further inquiries, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
Tel. No. (632) 857-0117

Source: SM Investments Corporation

S Group H1 2017 results: retail sales increased by 2.4% and stood at EUR 5.5 billion

S Group H1 2017 results: retail sales increased by 2.4% and stood at EUR 5.5 billion


Helsinki, Finland, 2017-Aug-08 — /EPR Retail News/ — During the first half of the year, S Group’s result improved across the board. In particular, the travel industry and hospitality business as well as the consumer goods trade showed positive figures.

S Group’s operating result for January–June 2017 was EUR 128 million, compared to EUR 87 million in January–June 2016. SOK Corporation’s operating result remained at last year’s level and amounted to EUR 11 million. S Group’s retail sales excluding taxes increased by 2.4% and stood at EUR 5.5 billion.

The improved result is attributable to streamlining of S Group’s operations and increased sales in various business sectors. Other contributing factors are a wider product range, extended store hours and lower prices. In Finland, S Group’s grocery sales continued to outperform the general market development in the field.

The price of food has been cut by a total of more than EUR 150 million throughout the S Group. To date, the sales margins have been reduced for approximately 3,000 products.

“The improved result allows us to continue lowering prices in future. We will also improve the selection of products and services. A recent example from the consumer goods trade, is the Boy Meets Girl clothing line launched in the Prisma stores in August,” says Taavi Heikkilä, CEO of SOK.

Good service regardless of contact channel

S Group’s digital services have become increasingly popular. The online food trade increased by close to 50% from the corresponding period last year. The ABC mobile refuelling service is available at all ABC stations across the country, and approximately 200,000 co-op members already use S Group’s electronic receipt archive. New services are also underway.

“We want to provide unparalleled convenience and benefits from services. Our ambition is to provide customers with the same quality of service, regardless of the service channel,” says Heikkilä.

Customers have welcomed the extended store hours, including 45 S Group outlets that are open around the clock.

S Group’s investments remained at last year’s level and amounted to EUR 246 million. The main investment object was the new logistics centre for grocery products being built in Sipoo, which is already partly operational.

Co-op members were paid EUR 162 million in Bonus rewards, which was approximately EUR 10 million less than in 2016. Most of the decrease is attributable to a change in legislation prohibiting Bonus rewards for cigarettes and tobacco products. Co-op members received close to EUR 4 million in payment method discount for paying with S-Etukortti card.

S Group’s and SOK Corporation’s key figures for January–June 2017

S Group as a whole (cooperatives + SOK Corporation), January–June 2017:

  • Retail sales excluding taxes totalled EUR 5,464 million (EUR 5,336 million).
  • Retail sales increased by 2.4 percent.
  • Profit before appropriations and taxes was EUR 119 million (EUR 105 million).
  • Operating profit was EUR 128 million (EUR 87 million).
  • Investments totalled EUR 246 million (EUR 246 million).
  • At the end of June, there were 2,295,749 co-op members (2,246,459).
  • At the end of June, the number of personnel was 41,381 (41,337). This year, S Group is employing a total of around 13,000 summer employees and summer trainees through the Learn and Earn programme.
  • The total number of outlets at the end of June was 1,630 (1,647).

SOK Corporation (SOK + subsidiaries), January–June 2017:

  • Net sales (IFRS) were EUR 3,449 million (EUR 3,466 million).
  • Profit before taxes (IFRS) was EUR -4 million (EUR 11 million). The result was affected by non-recurring costs for closing the stores in Latvia and Lithuania.
  • Operating profit (FAS) was EUR 11 million (EUR 10 million).
  • Investments totalled EUR 25 million (EUR 50 million).
  • At the end of June, the number of personnel was 6,708 (6,604).

SOK Corporation’s full interim report will be available in the S-kanava online service on 17 August 2017.

Source: S Group


Intershop H1 2017 results: consolidated revenues up by 10% to EUR 18.0 million

  • Focus on wholesalers and cloud showing initial success
  • Consolidated revenues climb 10% to EUR 18.0 million (previous year: EUR 16.3 million)
  • Positive EBIT of EUR 0.2 million (previous year: EUR -1.3 million)

Jena, 2017-Aug-02 — /EPR Retail News/ — Intershop Communications AG (ISIN: DE000A0EPUH1), a leading independent provider of innovative solutions for omni-channel commerce, increased its consolidated revenues by 10% to EUR 18.0 million in the first six months of 2017. Following on from a strong first quarter, Intershop continued the positive business trend and signed up more than twice as many new customers in the first six months of 2017 than in the same period of the previous year, half of which were companies from the wholesale sector.

Supported by the good new business trend, the strategically important product revenues increased by 16% to EUR 7.6 million. Service revenues were up by 6% on the prior year period to EUR 10.3 million. In this segment, too, new customers made a major contribution to the positive business trend. Product revenues accounted for 43% of total revenues, up from 41% in the previous year.

The gross margin rose to 50% in the reporting period (previous year: 46%). As had been announced, the cost reductions in administrative functions achieved in the context of the “Lighthouse 2020” program were used to accelerate the new sector and cloud focus through additional investments in marketing and sales. As a result, costs in this area increased by 15% to EUR 4.2 million. At EUR 8.7 million, total operating expenses (OPEX) were moderately lower than in the previous year (EUR 8.8 million).

Moreover, Intershop generated slightly positive earnings before interest and taxes (EBIT) of EUR 0.2 million in the first six months of 2017 (previous year: EUR -1.3 million). The EBIT margin stood at 1% (previous year: -8%). At EUR 1.4 million, earnings before interest, taxes, depreciation and amortisation (EBITDA) also improved notably (previous year: EUR -0.1 million). The net result for the period amounted to EUR 28k (previous year: EUR -1.6 million), which is equivalent to earnings per share of EUR 0.00 (previous year: EUR -0.05).

Intershop posted clearly positive operating cash flow of EUR 1.8 million in the first six months of the year (previous year: EUR -1.4 million). As a result of the scheduled repayment of the loan raised in 2015, liabilities to banks were reduced by EUR 1.0 million to EUR 2.8 million as of the interim reporting date. Cash and cash equivalents declined by a moderate 3% to EUR 10.6 million, while the equity ratio climbed from 59% to 60%. Overall, Intershop’s asset and capital structure is solid.

Dr. Jochen Wiechen, CEO of Intershop Communications AG: “The good business trend in the first half of the year is already largely attributable to our new “Lighthouse 2020” strategy and the related repositioning and sector focus. We are confident that this trend is sustainable and expect to sign up a relevant number of new customers before the end the current year, especially in the B2B sector. Our cloud offering in cooperation with Microsoft is also showing a very positive trend. We feel we are well positioned to benefit from the increasing digitization of commerce and to successfully support the transformation of our customers.”

The Intershop Management Board continues to project moderately higher revenues and balanced earnings before interest and taxes (EBIT) for the full year 2017.

The interim report on the first six months of 2017 is available for download at

About Intershop

Intershop Communications AG (founded in Germany 1992; Prime Standard: ISH2) is the leading independent provider of omni-channel commerce solutions. Intershop offers high-performance packaged software for internet sales, complemented by all necessary services. Intershop also acts as a business process outsourcing provider, covering all aspects of online retailing up to fulfillment. Around the globe more than 300 enterprise customers, including HP, BMW, Würth, and Deutsche Telekom run Intershop solutions. Intershop is headquartered in Jena, Germany, and has offices in the United States, Europe, Australia, and China. More information about Intershop can be found online at

This news release contains forward-looking statements regarding future events or the future financial and operational performance of Intershop. Actual events or performance may differ materially from those contained or implied in such forward-looking statements. Risks and uncertainties that could lead to such difference could include, among other things: Intershop’s limited operating history, the unpredictability of future revenues and expenses and potential fluctuations in revenues and operating results, significant dependence on large single customer deals, consumer trends, the level of competition, seasonality, risks related to electronic security, possible governmental regulation, and general economic conditions.

Intershop Public Relations
Head of Corporate Communication
Phone: +49 3641 50-1000
Fax: +49 3641 50-1309

Source:  Intershop Communications AG