Zalando raises 2016 profitability guidance after strong second quarter
today Jul 19, 2016
Zalando, Europe's biggest dedicated online fashion retailer, raised its forecast for full-year profitability on Tuesday after reporting a jump in preliminary sales results for the second quarter.
It said second-quarter revenue came to 909 million ($1.01 billion) to 924 million euros, compared to a Thomson Reuters Smart Estimate of 915 million and equivalent to growth of 24-26 percent. It reports full figures on Aug. 11.
"This is a fantastic result for Zalando and we expect the stock to be up strongly today," said Bernstein analyst Jamie Merriman, who holds an "outperform" rating on the stock.
The shares were indicated up 8.1 percent in premarket trading.
Its second-quarter adjusted earnings before interest and taxation (EBIT) margin jumped to 7.5-9.5 percent from 2.5 percent in the first quarter, beating a Smart Estimate of 5.4 percent.
That prompted the company to raise its guidance for the full year to a margin of 4.0-5.5 percent from 3.0 to 4.5 percent.
It reiterated a forecast for full-year sales to grow at the upper end of a 20 to 25 percent range.
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