The adjusted earnings before interest and taxes (EBIT) are expected to increase to a level between €530 million (~$577.7 million) and €590 million (~$643.1 million).
In 2025, Zalando will continue experimenting with new content sources, types and formats. To diversify and scale the content pipeline for stories on Zalando, the company has launched the ‘follow my style feature’, inviting talents to give followers and fans access to their style and beauty preferences. With its so-called boards, the company will enable users to create curated boards dedicated to a specific topic or lifestyle theme, such as Urban Running and Parisian Skater Kids, Zalando said in a press release.
“Our ecosystem strategy is progressing well and is our exciting new North Star. It has already contributed to a strong financial performance in 2024, and we now accelerate our execution efforts and invest to capture future growth,” said Robert Gentz, co-chief executive officer (CEO) at Zalando.
“In our B2C growth vector, we are rolling out our updated loyalty programme, expanding our lifestyle offerings in areas such as sports, and inspiring customers through exciting content integrations. In B2B, we are almost doubling the markets we are operating in and offering more advanced software and logistics solutions to serve brands and retailers’ own web shops and apps,” added Gentz.
Zalando is set to strengthen its position in the B2C sector by enhancing its shopping experience through quality and service. A key initiative for 2025 includes the further expansion of its updated loyalty programme, Zalando Plus, which has already launched in Germany, Italy, Spain, France, the Netherlands, Switzerland, and Austria. The programme will be introduced in most markets next year. Additionally, Zalando will expand its platform into new territories, with planned launches in Portugal, Greece, and Bulgaria, added the release.
2024’s financial performance
Despite a subdued macroeconomic environment, Zalando identified growth opportunities in 2024. The company’s GMV rose by 4.5 per cent to €15.3 billion, while revenue saw a 4.2 per cent increase, reaching €10.6 billion.
The company’s active customer base increased to an all-time high of 51.8 million active customers by the end of 2024, marking an increase of 4.5 per cent year-over-year (YoY). Meanwhile, adjusted EBIT rises to €511 million, surpassing the updated guidance of €440-480 million and up from €350 million the previous year.
The adjusted EBIT margin rose from 3.5 per cent in 2023 to 4.8 per cent in 2024, supported by strong operational efficiencies and a significantly higher B2C gross margin, which saw a YoY increase of more than 2 percentage points to 43.5 per cent.
In 2024, the company also made significant strides in onboarding new, highly relevant brands and assortments like Versace menswear, Marine Serre, On, and Fjallraven, enhancing its designer and sports offerings. In February, Zalando also became the exclusive retailer for the iconic designer brand Diane von Furstenberg in Europe.
In addition, Zalando improved product presentation through elevated product detail pages, and is taking the product experience even further with tailored and innovative digital experiences such as its digital size advice for customers based on reference items and body measurements.
Zalando’s second strategic B2C pillar around making Zalando a lifestyle destination saw a strong 2024 increase in the number of customers using different propositions, led by its fashion offering and followed by lounge by Zalando, beauty, kids and family, and sports, the release added.
The company is elevating these categories into powerful lifestyle propositions with comprehensive assortments, personalised inspiration, and seamless convenience. Zalando is also rolling out existing propositions to more markets. The beauty proposition will be expanded to Spain and Finland, then serving customers in 13 European markets. Lounge by Zalando is being expanded to 5 more markets in 2025, to then be available in 22 markets.
ALCHEMPro News Desk (SG)
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