Online fashion retailer Zalando on Wednesday reported a first quarter loss, as solid revenue gains were not enough to compensate for higher operating costs.
Profit before tax swung to a loss of €102.2 million ($120 million), compared with a profit of €17.9 million in the same period last year, reflecting increased operating and fulfilment costs.
Fulfilment costs increased to €750.8 million from €591.5 million, and other operating expenses rose sharply to €99.7 million from €1.4 million.
Earnings before interest and taxes (EBIT) turned negative at €79.7 million, versus a positive €21.4 million previously.
Excluding one-time items, adjusted EBIT increased 38.7% to €64.8 million from €46.7 million a year earlier.
Net loss attributable to shareholders was €87.6 million or €0.34 per share, compared with a profit of €9.9 million or €0.04 per share a year ago.
Revenue rose 23.8% to €2.996 billion from €2.420 billion last year.
Active customers increased 18.8% year-on-year to 62.3 million, while number of orders rose 18.7% to 69.5 million.
Gross merchandise volume grew by 21.7% to €4.294 billion.
Looking ahead, the company confirmed its full-year outlook.
