Surprise recovery boosts online fashion retailer Zalando in the midst of fast-growing demand in Europe
Online retailer Zalando expects a profit of up to £ 8.5m for the first three months of the year
Online retailer Zalando will make an unexpected profit in light of the rapidly rising demand in Europe.
The company, Europe & # 39; s largest online-only fashion store, expects a profit of up to £ 8.5 million for the first three months of the year.
Analysts expected a loss of £ 8.5 million.
The shares in the company listed in Frankfurt rose by 10.6 percent or € 3.98 to € 41.56.
Zalando normally makes a loss during the period because it sells the stock at a lower price after Christmas day.
Adam Tomlinson, an analyst at Liberum, said: & # 39; This is a positive development in the short term.
It has built an infrastructure that is uniquely placed to keep out the competition and has a logistics network that always looks better than Amazon. & # 39;
Zalando sells more than 1,900 brands, including Nike, Ralph Lauren, Adidas and Levi & # 39; s.
It has struggled lately between fierce competition and heavy discounts at online rivals.
Meanwhile, profits are under pressure as it sets up investments in logistics and technology to improve online delivery.
Zalando tries to increase profitability by having brands sell a commission through its website instead of buying and selling products themselves.
David Schroder, chief financial officer, said: & # 39; We are satisfied with our performance in the quarter. & # 39;