Zalando more than triples annual profit in 2024
Zalando's headquarters in Berlin Credits: Zalando SE Berlin-based online fashion retailer Zalando SE announced solid financial results for fiscal year 2024 on Thursday, reporting both increased revenue and a substantial rise in profits. n mid-January, the e-commerce company had already pre-announced that it had exceeded its earnings forecast for the final quarter – an outlook that had been raised multiple times. The current year is now set to be shaped by Zalando’s planned acquisition of its competitor, About You. Zalando's net profit jumps to 251 million euros Zalando generated revenue of 10.6 billion euros in 2024, marking a 4.2 percent increase from the previous year. Meanwhile, Gross Merchandise Volume (GMV) grew by 4.5 percent to 15.3 billion euros. The company confirmed that both figures reached "the upper end of the projected range." Earnings increased even more significantly. Adjusted earnings before interest and taxes (EBIT) rose by 46.0 percent year-on-year to 511.1 million euros. This growth was driven by "operational efficiency improvements and a significant increase in the B2C gross margin," according to Zalando. Reported net profit amounted to 251.1 million euros, more than three times higher than the 83.0 million euros recorded in 2023. Management forecasts further growth for 2025 Zalando’s management anticipates further growth in 2025. Increases of four to nine percent are expected for both revenue and GMV. This is to be achieved "through the successful implementation of the ecosystem strategy in the two growth areas of Business-to-Consumer (B2C) and Business-to-Business (B2B)." Additionally, Zalando plans to expand its online shop into Portugal, Greece, and Bulgaria. The adjusted EBIT target for 2025 has been set between 530 million euros and 590 million euros. Co-CEO Robert Gentz highlighted the core elements of the current strategy. "In the B2C segment, we are further developing our Zalando Plus loyalty program, expanding our lifestyle offerings, including in the sports segment, and inspiring our customers with engaging content," he explained in a statement. "On the B2B side we will almost double the number of markets in which we operate and offer brands and retailers innovative software and logistics solutions for their own online shops." About You acquisition expected in Summer 2025 The anticipated acquisition of About You is not yet reflected in Zalando’s financial outlook. However, the company confirmed that it has secured more than 90 percent of About You's share capital, excluding treasury shares, "as part of the voluntary public takeover offer and related agreements." "The high acceptance rate underscores the strong support for this transaction," the company stated. The closing of the transaction is currently expected for summer 2025. The consolidation of About You will then follow. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
Berlin-based online fashion retailer Zalando SE announced solid financial results for fiscal year 2024 on Thursday, reporting both increased revenue and a substantial rise in profits.
n mid-January, the e-commerce company had already pre-announced that it had exceeded its earnings forecast for the final quarter – an outlook that had been raised multiple times. The current year is now set to be shaped by Zalando’s planned acquisition of its competitor, About You.
Zalando's net profit jumps to 251 million euros
Zalando generated revenue of 10.6 billion euros in 2024, marking a 4.2 percent increase from the previous year. Meanwhile, Gross Merchandise Volume (GMV) grew by 4.5 percent to 15.3 billion euros. The company confirmed that both figures reached "the upper end of the projected range."
Earnings increased even more significantly. Adjusted earnings before interest and taxes (EBIT) rose by 46.0 percent year-on-year to 511.1 million euros. This growth was driven by "operational efficiency improvements and a significant increase in the B2C gross margin," according to Zalando.
Reported net profit amounted to 251.1 million euros, more than three times higher than the 83.0 million euros recorded in 2023.
Management forecasts further growth for 2025
Zalando’s management anticipates further growth in 2025. Increases of four to nine percent are expected for both revenue and GMV. This is to be achieved "through the successful implementation of the ecosystem strategy in the two growth areas of Business-to-Consumer (B2C) and Business-to-Business (B2B)." Additionally, Zalando plans to expand its online shop into Portugal, Greece, and Bulgaria. The adjusted EBIT target for 2025 has been set between 530 million euros and 590 million euros.
Co-CEO Robert Gentz highlighted the core elements of the current strategy. "In the B2C segment, we are further developing our Zalando Plus loyalty program, expanding our lifestyle offerings, including in the sports segment, and inspiring our customers with engaging content," he explained in a statement. "On the B2B side we will almost double the number of markets in which we operate and offer brands and retailers innovative software and logistics solutions for their own online shops."
About You acquisition expected in Summer 2025
The anticipated acquisition of About You is not yet reflected in Zalando’s financial outlook. However, the company confirmed that it has secured more than 90 percent of About You's share capital, excluding treasury shares, "as part of the voluntary public takeover offer and related agreements."
"The high acceptance rate underscores the strong support for this transaction," the company stated. The closing of the transaction is currently expected for summer 2025. The consolidation of About You will then follow.
FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
This article was translated to English using an AI tool.
