Online Retailer Sees Revenue and Profits Soar
- Zalando reports strong and profitable growth in Q1 2019
- Revenues increased by 15.2% to £1.2bn
- Adjusted EBITDA rose from £0.3m to £5.5m
- Active customers up 14.1% to 27.2 million
- Site visits increased by 29.5% to 924 million
- Customers ordering more frequently
- Gross Merchandise Volume (GMV) grew 23.1% to £1.5bn
- Partner Program growth driven by intensified usage and new partners
- Zalando Fulfillment Solutions fulfilled 30% of Partner Program orders
- New e-money license for Zalando Payments Solutions
- Full-year guidance: GMV growth 20-25%, revenue growth low end, adjusted EBIT £150m-£193m, capital expenditure £257m
Zalando, the online fashion retailer, has reported strong growth in the first quarter of 2019 with revenues increasing by 15.2% to £1.2bn and adjusted EBITDA rising from £0.3m to £5.5m. The company attributes this success to an increase in active customers (up 14.1% to 27.2 million) and a 29.5% rise in site visits to 924 million, with customers ordering more frequently than before. Zalando’s Gross Merchandise Volume (GMV) grew by 23.1% to £1.5bn, outpacing revenue growth due to the strong development of its Partner Program and revenue recognition effects. The retailer also confirmed its full-year guidance for GMV growth between 20% and 25%, revenue growth at the low end of this range, an adjusted EBITDA between £150m and £193m, and capital expenditure around £257m.
Factuality Level: 10
Factuality Justification: The article provides accurate information about Zalando’s financial performance, growth, and expansion strategies without any misleading or irrelevant details, opinion masquerading as fact, or logical errors.
Noise Level: 2
Noise Justification: The article provides relevant information about Zalando’s financial performance and growth strategies without any unnecessary filler content or misleading statements.
Financial Relevance: Yes
Financial Markets Impacted: Zalando’s stock price may be impacted by these financial results and guidance, affecting investors and competitors in the online retail industry.
Financial Rating Justification: The article discusses Zalando’s financial performance, including revenue, profits, and growth, as well as its guidance for the year. This information is relevant to investors and can potentially impact the company’s stock price and other companies in the same industry.
Presence Of Extreme Event: No
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Extreme Rating Justification: There is no extreme event mentioned in the text.
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