Online fashion giant Zalando has reported a “strong” third quarter as sales and profits surged amid “increasing consumer demand”.
Zalando said EBITDA during its third quarter soared from €23m (£19.3m) to €93m (£78.1m), reflecting a margin of 3.9%.
Group revenue during the quarter was up by 5% from €2.27bn (£1.9bn) to reach €2.39bn (£2.01bn), with business-to-consumer revenue up by 4.3% and business-to-business revenue also rising by 11.1% respectively.
Zalando said its number of active customers also rose by half a million customers to reach 50.3 million during the quarter.
During the third quarter, Zalando also recorded 57.9 million orders compared to 54.5 million during the same period last year, as well as an increase in its average basket size to around €61 (£51.20).
The online fashion retailer said its quarterly performance is a result of “increasing consumer demand” amid an “industry-wide strong start” to the autumn/winter.
Zalando highlighted areas in which it is investing for future growth including expanding its lifestyle proposition, strengthening its European logistics network, and taking measures to boost customer loyalty.
In terms of outlook, Zalando held firm on its guidance for the full year from October which expects to see revenue rise between 2% and 5%, and adjusted EBIT to come in at between €440m (£369.1m) and €480m (£402.7m).
Zalando chief financial officer Sandra Dembeck said: “Consumers love the quality brands we are adding, spending time with our exciting digital experiences while embracing our expanding lifestyle offerings in areas such as sports, beauty, and kids and family.
“To capture further growth opportunities, we are investing into initiatives such as evolving our plus loyalty programme, offering more inspiring content, ramping up our tech hub in China and driving localised convenience for customers via our European logistics network.”
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