To help sustain its strong growth, Zalando has signed a rental contract for a new office of 13,000 square meters in Berlin. According to preliminary figures, Zalando's sales jumped by 35 percent to €738 million in the second quarter ended June 30, delivering an adjusted operating margin (Ebit) of between 3 and 5 percent of sales, in spite of a temporary increase in certain costs.
However, the low end of the anticipated profit of €22-37 million would be significantly lower than the €35 million level of the year-ago period. According to Wirtschaftswoche, Europe's leading clothing and footwear web store is encountering problems in getting payments from customers, in spite of repeated reminders. Zalando allows customers in Germany, Austria and Switzerland to pay after they receive an invoice.
In contrast with Zalando, Amazon surprised financial analysts by announcing a major financial turnaround for the second quarter ended June 30, with net earnings of $92 million against a net loss of $126 million. Its sales grew at a higher than expected rate of 20 percent to $23.2 billion, overtaking those of Wal-Mart. Sales in the U.S. went up by 25.5 percent to $13.8 billion.
Meanwhile, Zalando has announced that it will extend its new curated shopping service, Zalon, to Austria and Switzerland. Other countries may follow at a later stage.