Zalando has raised its profit margin guidance, unveiling further sales growth in its third quarter.

The etailer now expects to achieve a full-year adjusted earnings before interest and tax (EBIT) margin of between 5% and 6%.

Co-chief executive Rubin Ritter said: “In the third quarter, we outperformed a sluggish fashion market and improved our profitability significantly, allowing us to increase our guidance for the full-year EBIT margin.

“We remain on track to reach our targeted revenue growth for the full year.

“This proves again our ability to find the adequate trade-off between growth and margin, depending on market conditions.”

UK ‘still an attractive market’

Zalando’s sales rose between 16% and 18% from €827m to €841m in the quarter to September 30.

It expects its adjusted EBIT margin for the quarter to stand between 1% and 3%, up from -3.3% in the third quarter of 2015.

Zalando’s sales and profits have been flying of late, although it is yet to make as concentrated a push into the UK as it has in some markets.

Ritter said in August that Britain was still an attractive market for Zalando despite Brexit.

In recent weeks, the company has begun to advertise in print magazines.

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