Companies

Zalando reiterates full year guidance

May 8, 2025 Germany

The fashion online retailer has reported a strong first quarter with growth in revenue and profits. As a result, it has confirmed its full year outlook despite the challenging macroeconomic environment

“Our ecosystem strategy is progressing well, and customers and partners are embracing our expanding offerings. Growth in B2C accelerated due to a successful end-of-season sale, a promising start to the spring/summer season supported by the continued roll-out of our updated loyalty program Zalando Plus and a new high of active customers. In B2B, we are delighted to see a continuation of our double-digit growth trajectory as we are working to advance our ZEOS offering with a particular focus on logistics and software solutions this year”, commented the co-CEO, David Schroeder.

First Quarter Results

In the first quarter of 2025, Zalando reported a revenue increase of 7.9% to 2.4 billion euros and a gross merchandise volume increase of 6.5% to 3.5 billion euros, on a comparable basis to the same period of the previous year.

The company’s adjusted EBIT improved to 46.7 million euros from 28.3 million euros in the first quarter of 2024, in line with market expectations, resulting in an improvement of 0.7 percentage points in the adjusted EBIT margin to 1.9%.

Zalando highlighted that the number of active customers in the B2C pillar increased by 2.9 million year-on-year to 52.4 million, driven by successful end-of-season sales and a promising start to the Spring/Summer season.

Overall, this pillar recorded a 7.6% year-on-year growth in revenue in the first quarter to 2.18 billion euros, and an increase in adjusted EBIT from 22.9 million euros in the same year-ago period to 41.0 million euros.

In the B2B pillar, Zalando increased its revenue by 11.6% year-on-year to 240 million euros in the first quarter, thanks to its ZEOS operating system, and the adjusted EBIT rose slightly to 5.8 million euros from 5.4 million euros in the first quarter.

The multi-brand e-commerce company reported a first quarter net income of 9.9 billion euros

Full Year Outlook

Despite a fast-changing geopolitical and macroeconomic environment, Zalando still expects both GMV and revenue to grow between 4% and 9% in 2024, as compared with the last year, and adjusted EBIT to reach a level between 530 million euros and 590 million euros.

The guidance does not take into account the effects of the planned acquisition of Hamburg-based ABOUT YOU.

Image Credits: corporate.zalando.com

Germany Companies ecommerce Fashion Online Quarter Results Results Zalando