Zalando releases trading update for third quarter of 2016

BERLIN, 2016-Oct-20 — /EPR Retail News/ — Zalando SE, Europe’s leading online platform for fashion, grew group revenues in the third quarter of 2016 to EUR 827-841 million or by 16-18% (Q3 2015: EUR 713 million), according to preliminary figures. Zalando expects to achieve an adjusted EBIT of EUR 8-25 million, corresponding to an adjusted EBIT margin of 1.0-3.0% (Q3 2015: EUR -24 million, -3.3%). In the first nine months of 2016 Zalando achieved revenues of EUR 2,540-2,554 million, growing by around 22% (first nine months 2015: EUR 2,090 million). Adjusted EBIT for the first nine months is expected to come in at EUR 109-126 million, a margin of around 4.6% at the mid-point of the range (first nine months 2015: EUR 36 million, 1.7%).

Rubin Ritter, co-CEO, said: “In the third quarter we outperformed a sluggish fashion market and improved our profitability significantly, allowing us to increase our guidance for the full-year EBIT margin. We remain on track to reach our targeted revenue growth for the full year. This proves again our ability to find the adequate tradeoff between growth and margin, depending on market conditions.”

As a result, Zalando reiterates its growth ambition for the next few years with 2016 coming in towards the higher end of the 20-25% growth corridor and increases full-year adjusted EBIT margin guidance for 2016 to 5.0-6.0%.

All figures reported herein are preliminary and unaudited. Full financial disclosure for the third quarter will be published on November 10, 2016.

ABOUT ZALANDO
Zalando (https://corporate.zalando.com) 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 over 1,500 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 three centrally located fulfillment centers in Germany allows us to efficiently serve our customers throughout Europe. 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 over 160 million visits per month. In the second quarter of 2016, around 65 per cent of traffic came from mobile devices, resulting in 18.8 million active customers by the end of the quarter.

CONTACT:
René Gribnitz
VP Communications
rene.gribnitz@zalando.de
+49 30 20968 2022

Source: Zalando

Tesco releases its trading update

Cheshunt, England, 2014-12-9 — /EPR Retail News/ — In recent weeks we have implemented new policies and procedures which will govern our commercial income activities and taken actions to invest in and improve our customer offer.

In our interim results on 23 October we highlighted that full year profitability would be impacted by actions we may choose to take and that the commercial income overstatement would affect second half results as we revisited our plans with the new management team

Our new Commercial approach will underpin stronger long-term relationships with our suppliers, benefiting customers, whilst at the same time ensuring that revenue recognition is transparent and appropriate.  We have retrained our entire team and begun the cascade with our suppliers.

In addition, we have invested further in service, with more than 6,000 new colleagues in store, increased product availability on key lines and invested in price – all aimed at enhancing our customer offer.  The early feedback from customers is encouraging.

On the 8th January we will share more detail about the measures we plan to take to improve the competitiveness of the UK customer offer and to strengthen the balance sheet.  On the basis of the changes and investments made to date we now anticipate group trading profit for the financial year ending February 2015 will not exceed £1.4billion.

Dave Lewis, CEO said:

“Tesco is focused, and will continue to focus, on doing the right thing for customers.  This means running our business in a way that everything we do creates sustainable value.  Whilst the steps we are taking to achieve this are impacting short-term profitability, they are essential to restoring the health of our business.  We will not engage in short term actions that compromise in any way our offer for customers.

We still have much to do but are making good progress in developing our plans to improve the long-term positioning of the Group and I will share more of that on the 8th January.  Our priorities remain restoring competitiveness in the UK, protecting and strengthening the balance sheet and rebuilding trust and transparency.  For now, all the Tesco team is focused on delivering the best Christmas for customers.”

 

Contacts

Investor Relations:
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