Zalando Has Declined In Cost And Profitability In The First Quarter.

According to the world clothing shoes and hats net,

The first quarter cost of SE (ZALG.DE) released today showed a decline in profitability, but all met the initial expectations of last month. The group's share price rose 1.7% to 41.79 euros in early trading.

Zalando SE revealed that its number of active users exceeded 20 million for the first time at the end of March, leaving the UK with a strength of more than 5 million.

PLC (ASC.L) is the most pure in Europe.

Online retailers.

The group pointed out that during the first quarter, the commercials of American star James Franco James Franco succeeded in attracting more male consumers for the website platform. Besides, the entry of fashionable brands such as Oysho of Inditex SA (ITX.MC) Indo Textile Group also drove further sales growth.

The group achieved quarterly earnings of 980 million 200 thousand euros, up 23.1% from 796 million 100 thousand euros a year earlier, or narrowed from 26% in the 24% quarter of last year and four in the four quarter of last year.

The core market was 17% growth in Germany, Austria and Switzerland, while 28% in other parts of Europe, accounting for 48.5% of the total income of 428 million 300 thousand euros, a significant increase from 42% in the same period last year.

The adjusted EBIT rose to 20 million 300 thousand euros from 20 million 200 thousand euros in the same period last year, which is basically in line with market expectations.

However, the adjusted EBIT profit margin dropped by 40 basis points to 2.1%, of which the core market's profit margin shrank by 220 basis points to 7.5%, while other European markets still failed to make profits.

Net profit increased 10.9% to 5 million 100 thousand euros compared with the same period last year.

Zalando SE co CEO Rubin Ritter pointed out in the quarterly report that the group's priority is profit growth, which has been achieved in the first quarter. At the same time, the group is committed to increasing market share and reaching more customers in Europe by increasing investment in consumer experience, technology and logistics infrastructure and brand partners.

In the first quarter, the capital expenditure excluding M & A pactions amounted to 78 million euros, accounting for nearly 4 of the annual budget of 200 million euros.

On the other side, ASOS PLC also lowered the median retail gross profit margin by 40 basis points because of taking advantage of price cuts. In order to enhance competitiveness in the fierce online fashion market, the group's capital expenditure will reach 170 million euros this year, much higher than the sum of the previous 5 years, allowing investors to have doubts about its high cost support for revenue growth mode.

Rubin Ritter said last month that it was satisfied with the current positive profitability and profitability. Analysts also believe that Zalando SE has a competitive advantage.

The total number of orders in the group increased by 27.6% to 19 million 900 thousand in the first quarter. The average number of orders for active users increased from 3.6 to 3.2 in the same period last year, but the unit price decreased by 5.3% to 63 euros.

Zalando SE still maintains annual revenue growth of 20%-25% and adjusted EBIT profit margin is expected between 5.0%-6.0%.

Last month, ASOS PLC raised its annual revenue forecast, and its profit outlook remained unchanged.

At the time of the deadline, Zalando SE (ZALG.DE) rose 0.81% to 41.44 euros in early trading. Since 2017, the stock has risen 14.2%, and the cumulative increase in the past 12 months has been 46.1%.

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