German online retailer Zalando continues to win over consumers.
The company, based in Berlin, announced on Tuesday that its revenues grew by as much as 26 percent to between 909-924 million euros (about $1 billion) in the second quarter, increasing from 733 million euros ($807 million) last year.
Zalando said it now expects to achieve adjusted earnings before interest and taxes in the range of 68 million euros ($74.9 million) and 88 million euros ($96.9 million), corresponding to a 7.5-9.5% margin. By comparison, earnings in the year-ago period reached 30 million euros ($33 million) or 4.1%.
To that end, revenues in the first half of 2016 were up between 24 and 25 percent on last year, hitting 1.7 billion euros ($1.9 billion), versus 1.4 billion euros ($1.5 billion).
“Zalando had a very strong Q2. We delivered on our ambitious growth target and saw our profitability increase substantially. The operating leverage of our business has developed strongly while we continue to push forward with growth investments into our customer proposition and platform initiatives,” Rubin Ritter, a member of the management board, said in a statement.
As a result, the company restated its full-year guidance of strong revenue growth at the upper end of the 20-25 percent range and raised its EBIT margin outlook to 4.0-5.5%.
Zalando (ZAL), which went public in October 2014, offers more than 1,500 brands selling shoes, apparel and accessories for men, women and children in 15 European markets, with free delivery and returns. It’s said to attract more than 160 million visits per month. More than half of its traffic (62 percent) comes from mobile devices.