BERLIN, May 2 (Xinhua) -- German online fashion retailer Zalando grew its customer base, revenues and earnings in the first quarter of fiscal year 2019, the company announced on Thursday.
"Our clear customer focus has paid off in the first quarter, as we made further headway to build the starting point for fashion in Europe," said Zalando co-CEO Rubin Ritter.
Revenues at Europe's biggest fashion retailer grew 15.2 percent to 1.4 billion euros (1.57 billion U.S. dollars) while gross merchandise volume (GMV) grew even faster at 23.1 percent to 1.8 billion euros.
Operational profits (EBIT) rose from 400,000 to 6.4 million euros or a margin of 0.5 percent, which was supported by an improved gross margin, Zalando announced.
The faster growth in GMV compared with revenues was attributed to a "strong development" of Zalando's partner program, in which third party fashion retailer can sell their products using Zalando's online platform, as well as "revenue recognition effects", a Zalando statement read.
Berlin-based Zalando said customers were ordering more frequently, with satisfaction hitting an all-time high.
The number of active customers grew 14.1 percent to 27.2 million and site visits rose 29.5 percent to 924 million.
"We are happy with our financial results in the first quarter, which show a strong focus on growth and are in line with our annual guidance," commented David Schroeder, chief financial officer of Zalando, adding "We will continue to invest in areas of our business that have high added value for our customers."
For 2019, Zalando confirmed its full-year guidance of GMV growth of between 20 and 25 percent, revenue growth at the low end of this range. Adjusted EBIT is anticipated by Zalando to range between 175 million and 225 million euros while capital expenditure is expected to amount to around 300 million euros.
Results for the second quarter of the 2019 fiscal year are scheduled to be published on Aug.1 by the German online fashion retailer.
