How can you buy Zalando shares?
Zalando has revolutionized the way we buy clothes online in Europe. Buying and returning unsuitable clothing free of charge is hugely popular. As a result, Zalando was the first company to achieve more than a billion euros in turnover within four years. Do you also want to benefit from this success? Then it may be interesting to invest in Zalando shares. In this article we look at how you can do this best.
Do you think Zalando will continue to achieve good results in the future? Then it may be attractive to buy Zalando shares. When you buy a share, you become co-owner of the company. When the company is profitable, it may even decide to distribute part of that profit in the form of dividends.
However, when buying shares, it is important to choose a broker with low transaction costs. Especially as a novice investor you probably have a limited budget. It’s a shame to lose a large part of your investment because you pay (too) high costs. An example of a party that is also suitable for the novice stock investor is eToro. At eToro, you do not pay any commissions. Use the button below to open an account with eToro:Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
How can you actively invest in Zalando?
When you buy Zalando shares, you will not always make a profit with your investment. Bad news can have a negative effect on the share price. For example, the company has been negative in the news because of the bad working conditions in the warehouses. As an active trader, you can benefit from this kind of news. You do this by opening a short position: you get a positive result when the share price drops.
But how can you actually open a short position on Zalando? You can do this with a broker like PIus500. With PIus500 you speculate on the price development of the CFD share Zalando. In this way you do not become the owner of the company, but you can actively speculate on the developments of the stock. Would you like to try this modern way of trading yourself? Then open a free demo account with Plus500:72% of retail CFD accounts lose money.
What is the stock price of Zalando?
Do you want to know how the Zalando share is performing at the moment? Then it is interesting to keep an eye on the stock price. In the graph below you can see the latest developments of the CFD stock Zalando:
About the company Zalando
The Berlin-based company Zalando is originally a German webshop. It offers shoes, clothing and fashion accessories. The company is active in 17 countries. Customers are located in Switzerland, Sweden, the Czech Republic, Spain, Poland, Austria, Norway, the Netherlands, Luxembourg, Italy, Ireland, France, Finland, England, Germany, Denmark and Belgium.
Nowadays Zalando is a major international player. This can make it attractive to invest in this large webshop.
The establishment of the company
In 2008 Robert Schneider and David Gentz founded the company Zalando. They started offering shoes online in Germany. In 2009 the company also started to focus on Austria and in 2010 the Netherlands and France were added.
The assortment was also expanded in 2010 with clothing and fashion. By developing its own collection, Zalando succeeded in becoming market leader in the online sale of shoes in 2010. In the years that followed, Zalando started to further expand to other countries and markets.
The success of Zalando
The company has shown constant growth since its foundation. In 2011, Zalando achieved a turnover of 510 million euros. In 2012, that turnover had doubled to 1.15 billion euros. Within Europe, Zalando is the first company to have a turnover of more than one billion euros four years after its foundation.
The increase in sales in the first four years of the company can be attributed to rising demand in existing markets and expansion into new markets. By launching webshops in new markets, the company has an ever-increasing reach.
Do you think this trend will continue? If the company continues to grow strongly, profitability will continue to increase. It may then be attractive to buy Zalando shares.
Loss despite high turnover
The company suffered losses in the first few years, despite the sharp growth in turnover since the company was founded. The company did not make a profit until 2013 because of the high advertising costs and the costs of shipping and returns.
Technology companies initially focus on growth rather than profitability. This can also be seen, for example, in the company Uber.
The company goes public
In 2014, the company’s board decided to go public by registering on the Frankfurt stock exchange. On October 1, 2014 Zalando went to the stock exchange. After placing 10% of the shares at a price of €21.50, the company was listed.
No shares were purchased by the incumbent shareholders. The entire proceeds of the IPO were used for business operations. The company will be part of the SDAX stock index as of December 22, 2014.
Criticism of Zalando
The fastest growing company in Europe came in negative news in 2012. A German television journalist made an undercover report. In his documentary, the working conditions in a distribution centre of Zalando were shown.
The high work pressure and the strict control of the employees of the distribution centre were demonstrated. The documentary caused a storm of criticism in the media. Zalando promised to improve the working situation.
In 2014 Zalando was portrayed negatively once more. A German television journalist went undercover in a distribution centre in Erfurt. Zalando said she didn’t recognize herself in her reportage. The company took legal action against the journalist because she published business processes.
These kinds of negative news items can put the Zalando share price under pressure. It can then be attractive to take a short position on the stock. In that case, you will earn money when the price drops: this way of investing is also called trading.
Luxury products at Zalando
At the presentation of the annual figures in February 2020, Zalando announced its intention to focus more on luxury products. The company wants to be more present in the premium segment.
Therefore, the company will offer more luxury clothing. The assortment will be expanded with luxury brands such as Alberta Ferretti and Moschino Couture.
Do you think this development will contribute to the further success of Zalando? Then you can certainly make an investment in the company!