Shares of Zalando SE (ETR: ZAL) rose 6% to print fresh record highs at €87.84 after the e-commerce firm raised 2020 guidance on the back of a strong performance in the third quarter.
Zalando said it expects gross merchandise volume (GMV) to jump 25% to 27% on expectations that revenue will rise by 20% to 22%. The German company expects an adjusted EBIT of €375 million to €425 million for the financial year 2020.
The latest update is based on higher projections, given that the company previously expected
GMV growth of 20% to 25%, revenue rising between 15% and 20 %. EBIT was previously expected between €250 million €300 million for the full year.
The 3Q preliminary figures show that GMV rose by 28% to 31% to €2.43 – €2.48 billion. Revenue jumped between 20% to 23% and should come to a region of €1.83 – €1.87 billion. EBIT is expected between €100 to €130 million euros, smashing €6.3 million reported a year ago.
“The continued very strong and successful execution of the Zalando platform strategy, against the backdrop of an accelerated consumer demand shift towards digital offerings in the course of the corona pandemic, has positively impacted the strong development in the third quarter,” the company said in a statement.
Zalando is due to report its final financial figures for the third quarter on November 4, 2020.
Zalando share price currently trades over 3% in the green at €85.50.
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