Financial News
Zalando stock price shots 5% higher as profit doubles
Shares of Zalando (ETR: ZAL) gained today in Frankfurt after the retailer saw its revenue jumping over 27% in the second quarter. As a result, Zalando stock price logged a fresh all-time high at 69.34.
Fundamental analysis: Booming e-commerce industryZalando, Europe’s biggest online-only fashion retailer, has seen its revenue and profit skyrocket higher as the world moved to online shopping in 2020 amid the pandemic. The Berlin-based firm witnessed its adjusted EBIT shoot 108% higher in the second quarter to 211.9 million euros.
Revenues during the quarter jumped 27.4% to 2.03 billion euros as the lockdown measures closed physical stores around the globe.
“We have come out of the first wave of this pandemic stronger than we went into it,” Zalando’s chief financial officer David Schröder said in a statement.
“Many of our partners have intensified their business on our platform in the last months, and we have managed to successfully grow together. We are all very happy, especially given the extraordinary circumstances.”
Zalando performed strongly in German-speaking countries – Switzerland, Germany and Austria (DACH countries).
“In the first quarter, as we reported, the margin in the rest of Europe was pretty negative. However, we also saw very strong rebounds in the second quarter [in non-DACH areas], with a margin of more than plus 7 percent, which brings us close to break-even,” said Schröder.
The e-commerce company also posted a new record of 1.29 billion site visits during the second quarter of the year. This is an increase of 31.4% from a year ago, while the number of active shoppers rose by 20.4% to 34.1 million.
Technical analysis: New record highs loggedZalando share price soared around 5% to exceed the former all-time high of 68.82, printed in July. Following a strong quarter, the buyers rushed to buy Zalando stock and push it towards the fresh record highs at 69.34.
Zalando stock daily chart (TradingView) As seen in the daily chart above, the reason why Zalando share price stopped above the 69.00 mark is the existence of the 161.8% Fibonacci extension line. This resistance, together with expected profit-taking at these levels, may force a pullback to the 58.00 handle, where the 127.2% Fibonacci extension is located.
SummaryZalando stock price erupted higher to print the new all-time high after the e-commerce company saw its profit skyrocket over 100% in the second quarter.
The post Zalando stock price shots 5% higher as profit doubles appeared first on Invezz.
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