Zalando Friday quarterly revenue rose 34.6% from 372 million euros in the same period last year

Absrtact: Zalando, Europe's largest fashion dealer, reported a 372 million increase of 34.6% to 501 million euros in the first quarter in Friday over a year earlier, slightly below 36% in the four quarter last year, although the core profitability of the period was significantly improved but still failed to be positive. Zalando founder

Zalando, Europe's biggest fashion dealer, reported a 372 million increase of 34.6% to 501 million euros in the first quarter in Friday over the same period last year, slightly below 36% in the four quarter last year, although the core profitability of the period was significantly improved but still failed to be positive.

Rubin Ritter, one of Zalando's founders and Group management Committee members, said the group would move toward a break-even target for 2014 years, but there is still a distance. The Group noted that after the audit, the operating profit rate for fiscal year 2013 changed from 6.7% to 6.5%, compared with 2012 for fiscal year 7.2%.

Kepler Cheuvreux analyst Bjorn Gustafsson said that Zalando's first-quarter sales growth was better than expected, but was disappointed by its inability to achieve break-even this year. Since its inception in 2008, Zalando has been expanding in the major European markets, marketing spending and warehousing physics, order fulfillment and other infrastructure investment is huge, so has been unable to achieve profitability.

Rumors of a Zalando listing have been brewing since the beginning of last year, and earlier this week Reuters quoted sources as saying Zalando had selected Credit Suisse, Goldman Sachs and Morgan Stanley to prepare for the three-quarter IPO. The German magazine "Bilanz" revealed that Zalando had decided to list on the Nasdaq exchange. However, the FT's latest report today indicates that the group will be listed in Frankfurt for a specific date, October or earlier, because of the high profile of Zalando in the group's headquarters in Germany.

The value of the market for Zalando is $5 billion, and investment Kinnevik, a major shareholder, said it held 35% of its Zalando stake of SEK 12.14 billion, making it the biggest technology in European IPOs since 2000.

Although Zalando has repeatedly denied preparation for the IPO, the group organized its organization in December 2013 from German 2¥q Liability Company, The change to a private-equity firm used by most German-listed companies (Private German Stock Corporation, or AG) has also made the market more speculative in its approach to listing.

Since 2013, Zalando's income growth has shown a marked slowdown, with a four-quarter increase of 74%, 70%, 42% and 36% respectively. At the same time, Zalando's web site traffic growth has been slipping since the four quarter, according to comscore, the US internet research firm, Zalando's visit in December 2013 was only 26.4% per cent higher than in 2012, from 53% in September, Less than 40% in October and November fell, entering 2014, further slowing down to 17% in January, 17.4% in February and 11% in March, but this data does not include the amount of traffic on the mobile end. The group had previously said it had no intention of entering new markets this year and had been pointing to a reduction in market promotion, so slowing the pace of user growth was expected.

Zalando a major management change in early 2014, the group's major shareholder investment Kinnevik CEO and Zalando new chairman of the Board of Directors Mia Brunell Livfors at the end of January suddenly announced the resignation of another development, Two companies have been hit hard, this distance mia Brunell Livfors was appointed to lead the Zalando board of Directors less than one months. Investment Kinnevik Executive Chairman, founder of the company Stenbeck daughter Cristina Stenbeck will take over the role of President Zalando. Meanwhile, the German publishing group Axel Springer Chief financial officer Lothar Lanz also joined the board.