FRANKFURT/STOCKHOLM, July 18 (Reuters) - Europe’s biggest online fashion retailer Zalando, a possible IPO candidate, said on Friday it had its first profitable quarter ever on an operating level.
“The favorable trend towards break-even observed in Q1 2014 accelerated, leading to a profitable Q2 at group level and a first half-year group EBIT margin around break-even,” the company said in a statement.
Zalando, which is 37-percent owned by Swedish investment firm Kinnevik, started selling shoes in Germany in 2008 and now ships 1,500 different brands to customers in 15 countries.
Zalando said it expected second-quarter sales to come in at between 520 million euros ($703.04 million) and 560 million euros, up from 437 million in the same period last year.
“Based on this development we reiterate our plan to take a significant step towards, but not quite reaching, EBIT break-even at group level for the full year 2014,” Rubin Ritter, member of Zalando’s management board, said in a statement.
The Berlin-based start-up, whose rivals include Britain-based ASOS Plc, is considering an IPO in October, people familiar with the transaction have told Reuters. ($1 = 0.7396 Euros) (Reporting by Harro ten Wolde and Mia Shanley; Editing by Christoph Steitz)