Q3 Trading Update: Zalando Continues Strong Growth, Launches Beauty Category

• Q3 revenues at EUR 1,064-1,081 million (27.5-29.5% growth), adjusted EBIT at EUR -5 to 5 million (-0.5 to 0.5% margin)
• 9M revenues at EUR 3,145-3,162 million (23.5-24.1% growth), adjusted EBIT at EUR 97-107 million (3.1-3.4% margin)
• Zalando to launch beauty category in spring 2018

BERLIN, OCTOBER 18, 2017 // Zalando SE, Europe's leading online platform for fashion, grew group revenues in the third quarter of 2017 to EUR 1,064-1,081 million or by 27.5-29.5% (Q3 2016: EUR 835 million, 17.1% growth), according to preliminary figures. For the same period, Zalando expects to achieve an adjusted EBIT of EUR -5 to 5 million, corresponding to an adjusted EBIT margin of -0.5 to 0.5% (Q3 2016: EUR 20 million, 2.3% margin).

In the first nine months of 2017 Zalando achieved revenues of EUR 3,145-3,162 million, growing by 23.5-24.1% (first nine months 2016: EUR 2,547 million, 21.9% growth). Adjusted EBIT for the first nine months is expected to come in at EUR 97-107 million, a margin of 3.1-3.4% (first nine months 2016: EUR 121 million, 4.7% margin).

Co-CEO Rubin Ritter said: 'We continue to push forward with our growth strategy at full speed, winning market share. Our results for the third quarter underline once again that our strong business expansion is driven by ongoing investments into our technology and logistics infrastructure, brand partner proposition and consumer experience. The expansion into the beauty market is a natural next step and reflects the demand of our customers.'

Zalando will enter the beauty market in spring 2018 to tap into the unique opportunity for beauty online shopping in Europe and supplement its current fashion assortment. Zalando will start selling products along the full product range - such as cosmetics, skin care or fragrances - and across various price points. The new category will initially be launched in Germany, with other markets set to follow after a successful ramp-up phase.

All figures reported herein are preliminary, full financial disclosure for the third quarter 2017 will be published on November 7, 2017.