Zalando: posts strong customer growth, shares soar
(CercleFinance.com) - Zalando shares jumped on Thursday after the German online fashion retailer reported better-than-expected customer growth in the second quarter, prompting the company to raise its earnings outlook.
Zalando said that its number of active customers grew by 3.7 million (+15.2%) year-on-year in the second quarter, to 28.3 million across its 17 European markets.
As a result, second-quarter revenue rose by 20% to 1.6 billion euros, although net profit fell to 45.5 million euros, from 51.8 million euros in the second quarter of 2018, due to the group's heavy investments in logistics.
Zalando said it achieved adjusted EBIT of 101.7 million euros in the past quarter, up from 94 million euros a year ago, representing a margin of 6.4%.
Following this "strong" first half of 2019, Zalando raised its earnings outlook to the "upper half" of the adjusted EBIT range of 175 million-225 million euros, from simply citing this 175 million-225 million euro range previously.
Analysts at Liberum raised their forecasts as customer acquisition across Europe has accelerated. The broker has raised its target price to 55 euros, from 45 euros previously.
The Frankfurt-listed Zalando is currently up 13.4% at 47 euros.
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