Germany's Zalando forecasts 2025 revenue of up to $14.4 bn

On a pro-forma basis, the company expects GMV and revenue growth between 4 and 7 per cent, assuming About You had been part of the group during the prior-year period.

The capital expenditure (capex) is expected between €200–280 million, and net working capital is forecast to remain negative. With the scheduled repayment of a €400 million convertible bond in August and an acquisition outlay in July, Zalando’s liquidity remains strong, with approximately €1.2 billion in cash.

Meanwhile, in the second quarter (Q2) of 2025, Zalando has delivered significant improvements across key financial metrics. The group’s GMV rose by 5 per cent YoY to €4.06 billion (~$4.71 billion), while group revenue increased 7.3 per cent to €2.84 billion (~$3.3 billion). Adjusted EBIT reached €185.5 million (~$215.18 million), up from €171.6 million in Q2 2024, maintaining a stable EBIT margin of 6.5 per cent. Net income also grew marginally to €96.6 million.

The company now boasts 52.9 million active customers—a 6.1 per cent increase YoY—while the number of orders reached 65 million. Average basket size climbed to €61.6, though average orders per customer dipped slightly from 4.9 to 4.8, Zalando said in a press release.

Zalando’s business-to-consumer (B2C) revenue rose 6.8 per cent to €2.58 billion in Q2, with adjusted EBIT improving to €173.7 million. The growth was underpinned by the expansion of Zalando’s loyalty programme—now covering 17 markets and serving over 10 million customers—as well as increased traction in Lounge, Designer, and Beauty verticals.

Zalando marketing services also reported 45 per cent growth in the first half (H1) of 2025.

In a major step to elevate customer experience, Zalando is launching an AI-powered discovery feed, replacing the app’s traditional home screen. The feed delivers personalised lifestyle content, live shopping, and editorial stories—blending e-commerce with social media–style engagement, while offering new opportunities for brand partners via integrated ad placements.

Zalando’s business-to-business (B2B) revenue climbed 12.2 per cent to €262.4 million in Q2, with adjusted EBIT rising to €11.4 million and margin improving to 4.3 per cent. The growth was led by Zeos fulfilment services, including Zalando fulfilment solutions and multi-channel fulfilment.

A key milestone was the launch of the Zeos Shopify application, which opens Zalando’s logistics capabilities to Shopify’s large European merchant base, enabling faster onboarding and reduced complexity. UK-based Next expanded its fulfilment partnership to include its own web shop and European marketplace operations.

Zalando and About You will continue to operate as distinct brands while pursuing joint value creation. From 2029 onwards, the group anticipates targeted annual EBIT synergies of approximately €100 million. The transaction aims to unlock significant long-term value and fortify Zalando’s ambition to be the go-to fashion and lifestyle gateway for European consumers, added the release.

ALCHEMPro News Desk (SG)