US Clothing Brand "Hand In Hand" Zalando Goes Deep Into European Market

U.S.A

A&F signed a wholesale agreement with Zalando, Europe's largest online fashion retailer.

From this week, Zalando will sell Abercrombie, Fitch, Hollister and Abercrombie Kids brand products in online shops in 15 European countries.

The agreement means that A&F will reach more than 18 million of the European active users on the Zalando platform.

According to Fran Horowitz, President of A&F group, establishing a partnership with Zalando can enhance its brand value and expand its influence in the European market.

Zalando also expressed some views on the cooperation.

"A&F has brought three brands to our platform, greatly widening the product categories provided by the platform.

The establishment of a cooperative relationship will enable consumers to reach more international brands and stimulate sales. "

Moritz Hahn, senior vice president of marketing & category management, said.

In addition to Zalando, the US clothing brand A&F signed a wholesale agreement with British retailer Next and Asos last year, with sales volume of 8 million 800 thousand.

In addition, the US brand has 17 chain stores in Europe.

In addition, before the two quarter earnings report released by Zalando, the largest pure fashion supplier in Europe in the two quarter adjusted the EBIT profit margin from 4.1% in the same period last year to 8.8%. Adjusted EBIT was 80 million 200 thousand euros, better than the 78 million euros expected by the market, and also jumped 167.9% over the same period last year, 30 million 200 thousand euros.

It is also said that even if Britain is removed from Europe, it will not accelerate the development of the group.

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Analyst Claire Huff believes that Zalando's two quarter revenue growth depends on the negative effects of Easter and the rebound in sales after rainy weather, more targeted advertising and the trend of overall consumption shifting to online retailing.

Zalando said that the introduction of Kate Spade&Co. and Ralph Lauren Corp.'s Club Monaco two light luxury brands and Fenty by Rihanna and other trend brands have further enhanced the attraction of websites to consumers.

By the end of June, the number of active users of the website increased by 14.6% to 18 million 800 thousand on a year-on-year basis. The average annual purchase frequency of active users increased from 3.3 to 2.9 in the same period last year, but the passenger price fell by 1.8% to 66.2 euros over the same period.

Mobile access accounted for 67.4%, compared to 56.6% in the same period last year.