Zalando reports sales surge for 2016

Zalando has reported strong growth in revenue and profits for its full year ending 31 December 2016.

Revenues for the European e-tailer grew 23% to €3.6 billion, while adjusted EBIT increased significantly from €107.5 million in 2015 to €216.3 million this year.

Meanwhile, net income dropped from €121.5 million to €120.5 million over the year. Fourth quarter net income dropped considerably compared to the fourth quarter of 2015, down from €102.7 million to €60 million.

The e-tailer said it expects to grow its revenues 20-25% in 2017, while EBIT margin will be in the range of 5-6% next year.

Around 20 million customers shopped with Zalando in 2016 – increasingly on mobile devices – up 11% from the previous year. Average orders per customer increased from 3.08 to 3.48 over the course of the year, while order value decreased slightly from €67.80 to €66.60.

"Strong growth requires nonstop investment. We are proud to have significantly progressed in expanding our business profitably," said co-CEO, Rubin Ritter. "As we build the technology and operating system to transform the European fashion industry, we will further invest into a unique and flawless consumer experience and a stronger supplier proposition to continue to drive growth ahead of the market. At the same time, we plan to expand our team by creating more than 2,000 new jobs this year."

Zalando also increased its technology team by 600 people over the course of the year, bringing its total up to 1,600. The e-tailer plans to hire a further 2,000 people across the wider business in the current financial year.