Zalando Forecasts 2016 Revenue Growth Near Top End of Range

BERLIN, Germany — Zalando SE, Europe's biggest online fashion retailer, forecast sales growth near the high end of its projected range this year as it gains more customers.

Revenue growth will be closer to 25 percent than 20 percent, the Berlin-based company said in a statement Tuesday. Earnings before interest and tax will be 3 percent to 4.5 percent of sales, Zalando said.

“Our market position has never been stronger, and we have never faced so many great opportunities,” managing board member Rubin Ritter said in the statement.

Zalando has made it simpler for consumers to buy entire outfits with just a few mouse clicks, increasing the average purchase size. It’s also steadily boosting sales from mobile devices, now about 60 percent of its traffic, letting customers shop on the go.

Analysts have forecast 2016 sales of 3.73 billion euros ($4.1 billion) and Ebit of 160 million euros, according to the consensus.

Fourth-quarter adjusted Ebit gained 9.2 percent to 71.8 million euros. Zalando said Jan. 19 operating profit was in a range of 61 million euros to 78 million euros during the period.

Shares of Zalando have lost 21 percent this year, while Germany’s 30-stock benchmark DAX Index declined 22 percent.

By Aaron Ricadela; editors: Nate Lanxon, Matthew Boyle, Thomas Mulier and Paul Jarvis.