BERLIN: Zalando SE said Tuesday that net profit rose 11% in the first quarter, though higher costs related to warehousing and shipping partly offset robust revenue growth at the German fashion retailer.
Net profit rose to 5.1 million euros ($5.6 million) in the January-to-March period from EUR4.6 million a year earlier on a 23% rise in revenues grew 23% to EUR980.2 million. Adjusted earnings before interest and taxes of EUR20.3 million missed analysts’ EUR23 million consensus earnings estimate. Zalando had disclosed preliminary ranges for revenues and adjusted EBIT last month. The online retailer invested in the ramp-up of fulfillment centers, same-day delivery and instant returns, which led to higher fulfillment costs. Zalando confirmed its full-year guidance of revenue growth in a range of 20% to 25% and an adjusted EBIT margin in the range of 5.0% to 6.0%
