“As we are executing our ecosystem strategy, we are excited by the positive response from customers and partners in the first quarter. We are returning to growth”, commented Sandra Dembeck, Zalando’s CFO. “B2C customers are showing increased interest in our quality assortment, digital tools, propositions and inspiring content. B2B customers are signing up for our unique offering. Both of our growth vectors are strong and contributing to results, demonstrating the strength of our plans”, she concluded.

First Quarter Results

In the first quarter of 2024, Zalando’s gross merchandise volume (GMV) reached 3.3 billion euros, reflecting a 1.3% increase on a comparable basis to the same period last year. Revenue came in at 2.2 billion euros, slightly below the previous year’s first quarter figure (2.3 billion euros).

Adjusted EBIT climbed to 28.3 million euros in the first quarter of the current fiscal year, reversing a loss of 0.7 million euros in the same period last year. This turnaround translates to a 1.3% profit margin, driven by successful inventory management and lower fulfillment costs, which boosted the company’s gross margin.

Building on the momentum of improved profitability, Zalando narrowed its losses in the first quarter. The company reported a net loss of 8.9 million euros, a significant improvement compared to a net loss of 38.5 million euros in the same period last year – this represents a loss reduction of almost 77%.

Full Year Guidance

The German online fashion retailer expects both GMV and revenue to grow between 0% to 5% this year, as compared to 2023. The company said it will continue to focus on profitable growth with margin progression, with adjusted EBIT expected to be between 380m and 450 million euros.