Things are looking pretty rosy for Zalando. Europe's largest online fashion retailer closed the first quarter of 2014 with a 35% rise in sales to €501 million. The solid growth comes ahead of the German company's potential initial public offering (IPO), expected to take place in the second half of this year.

The growth pace in Zalando's revenues in the quarter was slightly slower than the 36% rise recorded the previous three months. The retailer said that it was affected by the unfavourable weather conditions in the period.

Zalando's EBIT margin also scored substantial growth, though it remained negative, as the company managed to improve productivity and foster its marketing efficiency in the quarter. Total website visits also increased in the quarter, going up to 332 million from 275 million in the same period of 2013.

Rubin Ritter, member of Zalando's management board, said that the company will also take adequate steps to score a break-even result this year, but noted it may not quite reach it despite the improvement in its EBIT margin.

Zalando has been in the red since its creation in 2008 as it has been investing heavily in marketing initiatives to lure customers. It is determined, however, to prove that it can be profitable soon, Reuters commented.

Ritter did confirm that an IPO was a possibility but was reluctant to comment on reports stating it could be launched in the third quarter of the year.

According to sources quoted by the news agency, Zalando has already selected the banks that would organise the listing. Insiders told Bloomberg last month that the retailer had also hired law firm Freshfields Bruckhaus Deringer LLP to help it prepare for the flotation.