Zalando shares gain after boom in online shopping 

The German online retailer has expanded its sustainable clothing category to meet rising demand

Zalando, one of Europe's biggest online fashion sellers, has reported a sales surge after a boom in home-shopping and sustainable fashion. 

The German retailer, which sells products from Adidas and Coach, now expects revenue to grow by more than a fifth for its full year, ahead of its previous forecasts. 

The company has been boosted by shoppers flocking online to buy casual clothes and sportswear during lockdown, while the majority of brands with a high street presence were forced to shut stores. 

Zalando, which was founded days before the financial crash in 2008, has seen its market value soar to more than €20bn (£18bn). The stock rose as much as 5.5pc in Frankfurt on Friday, hitting a record high of €88.50.

It now expects earnings before interest and taxes of up to €425m, up by €125m from a previous estimate. 

“Zalando’s unrivaled position is only strengthening,” said Sherri Malek, an analyst at Royal Bank of Canada.

Zalando was helped by fewer people returning goods, which can be costly for websites.

It has expanded its sustainable clothes offering from 27,000 items to 60,000 as more customers search for environmental credentials before they buy

"With this major shift in mindset, there is a demand and momentum for change, and a need for the fashion industry to transform," Zalando co-chief executive Rubin Ritter said.

Other online sellers such as Asos, which updates the City next week, Boohoo and Zara owner Inditex have been lifted by the trend. 

Analysts expect an increase in sales of 17.7pc to £3.2bn at Asos for the year to the end of August and pre-tax profit £131m. It will share its performance on Wednesday.