Investment Idea

Investment idea: Zalando SE

24/02/2017 | 2 min read

The online fashion distributor maintains its growth and strengthens the position in Scandinavia.

Supported by the Christmas sales, Zalando SE reached a turnover of EUR 1 billion in the fourth quarter of 2016. Compared to the previous year period, the turnover increased about 26 percent to EUR 1,086 billion. It was the first time, Zalando’s turnover exceeded the EUR 1 billion level per quarter.

The accumulated turnover for 2016 amounted to EUR 3,633 billion which represents a growth of 23 percent. The EBIT was doubled up to EUR 225 million (compared to 2015).

Zalando wants to improve its service quality in Scandinavia.

According to the Co-Ceo Rubin Ritter, the company aims to maintain these growth rates for the following years. Especially in Scandinavia, the period of delivery shall be reduced down to not more than two days and further a new logistic center is planned in Sweden.

Moreover, Zalando wants to test the delivery on the day of order which already was attempted in Germany. Currently, Zalando offers its services in 15 European countries.

Cooperation with ProSiebenSat1.

Zalando announced a cooperation with the German media group ProSiebenSat1. to identify target groups more in detail. In particular, Zalando adds its anonymized user data to the video platform of ProSiebenSat1. which reveals more attributes than age and sex. Hence advertising customers can customize their promotions to potential consumers with the proper fashion awareness and purchase power.

Currently the Zalando stock notes at EUR 38,26 with an average target price of EUR 42,03 (Bloomberg). The market capitalization amounts to EUR 9,456 billion and the trailing 12 month P/E is 73,57.

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