ECommerce giant Zalando has released its earnings report for the second quarter of this year, reporting a revenue hike of 70 per cent to €427m, compared to this time last year. Despite this increase, the company still experienced a drop from its first quarter earnings, which were up by 74 per cent compared to 2012.
Zalando Managing Director Rubin Ritter told Reuters that this was because of a late summer and because the company did not expand to other markets in the second quarter of this year.
For the first half of 2013 Zalando reported €809m revenue, in comparison to €471m in the first half of 2012. The company attributes the growth to launching in new markets in the second half of 2012, along with its aggressive expansion in established markets. It aims to hit $2bn in revenue in 2013 – a fairly realistic goal judging by its latest earnings report. In 2012, Zalando reached more than €1.15bn in revenue.
Founded in 2008 by Berlin-based company builder Rocket Internet, Zalando and its subsidiaries is now available in 14 markets. In 2012, the company reached profitability in its core regions of Germany, Switzerland and Austria.
Zalando’s largest owner is Swedish investment bank AB Kinnevik, which holds 36 per cent of the company after transferring its shares to ownership in August this year. Other major shareholders in descending order of ownership include European Founders Fund, Anders Holch Povlsen, DST Global, Holtzbrinck Ventures and Tengelmann Ventures.
Rumours have been rife that the company is planning an IPO – though so far Zalando has denied this will be happening in the near future.