Zalando has presented its 2024 fiscal year results report. The German online fashion platform has revealed robust performance that contrasts with the downturn in its figures recorded in 2023. Zalando increased its revenue by 4.2% in 2024, reaching €10.6 million ($11.44 billion) In the previous fiscal year, this figure had declined by 1.9%.
Regarding the GMV (Gross Merchandise Value), it also experienced growth, specifically a 4.5% increase, reaching €15.3 million ($16.51 billion). Likewise, the adjusted EBIT went from 385 million USD in 2023 to €511 million ($551.56 million) in 2024, exceeding the forecasts set by Zalando, which were between €440 million ($474.92 million) and €480 million ($518.10 million).
But the highlight can be seen in its profits, which rose from €83 million ($89.59 million$ in 2023 to €251,1 million ($270.92 million) recorded in 2024. This signifies a stellar increase of 200%.
Robert Gentz, co-Chief Executive Officer of Zalando, expressed satisfaction with the evolution of the results: «Our ecosystem strategy is progressing well and serves as our new and exciting guiding star. It has already contributed to a solid financial performance in 2024, and we are now accelerating our execution efforts and investing to capture future growth.
In our B2C growth vector, we are implementing our updated loyalty program, expanding our lifestyle offering in areas like sports, and inspiring customers through engaging content integrations. In B2B, we are almost doubling the markets in which we operate and offering more advanced software and logistics solutions to service the web stores and apps of brands and retailers».
Zalando’s figures also showed a positive evolution concerning key KPIs such as the number of active customers, the number of orders, or its average ticket. In 2024, a historic maximum of 51.8 million active customers was recorded, representing a 4.5% year-on-year increase. Remember that during Zalando’s 2023 fiscal year, its number of active customers declined by 3.12%.
Regarding the number of orders, although this figure has not fully recovered from the 6.24% decline experienced in 2023, it managed to grow by 2.53%, increasing from 244.8 million orders to 251 million.
The average ticket was one of the figures for Zalando that did not suffer a decline in 2023, and it continued to grow in 2024, albeit modestly (+1.83%). Thus, the average order value of users on the online platform went from 63.47 USD to 65,73USD.
According to the report presented by the company, it has also advanced its sustainability goals. Zalando has managed to reduce greenhouse gas emissions in its operations by 82% and emissions from private label products by 48% between 2018 and 2024.
The major goal in this regard is to achieve net-zero emissions in its operations and private labels by 2024, and continue working towards achieving this across its entire platform by 2050.
Zalando continues to strongly commit to its B2C business, and for 2025, it is clear that the key is to evolve its value proposition by relying on its three main pillars: quality to enhance the shopping experience, positioning as a lifestyle destination, and offering personalized inspiration and entertainment.
Zalando aims to differentiate itself by offering a premium experience, focusing on quality at every touchpoint. One of its main strategies is Zalando Plus, its loyalty program, which is already available in key markets like Germany, Spain, France, and Italy, and will expand to new countries in 2025. Additionally, Zalando will extend its platform to new markets, launching in Portugal, Greece, and Bulgaria.
A key factor is the improvement of the catalog, incorporating brands like Versace, Marine Serre, On Running, and Fjällräven, as well as being the exclusive retailer of Diane von Furstenberg in Europe. This premium offering coexists with the enhancement of product listing pages and tools like the digital size advisor, which helps customers make better purchasing decisions.
Another strategy to enhance local convenience in each market is its patented solution Zalando “try before you pay”. This allows customers to pay with several methods at a later point and has achieved great results in Germany and has been successfully expanded to another eight markets.
Zalando wants to be much more than fashion. Therefore, it is elevating categories such as Beauty, Sports, Kids, and Family, turning them into complete experiences. «Zalando is also rolling out existing propositions to more markets: the Beauty proposition will expand to Spain and Finland, then cater to customers in 13 European markets. Lounge by Zalando will expand to five more markets in 2025, before being available in 22 markets».
Lastly, Zalando invests in content as a driving force of inspiration. Its Stories on Zalando section has published over 500 stories about trends and culture, featuring over 700 brands and 7,000 products.
Looking ahead to 2025, it will continue expanding the content of Stories on Zalando with new features like Follow My Style or thematic boards, where users can create and share looks and ideas with their community.
On another note, the platform is testing StyleIt, an outfit creation feature using avatars, and plans to launch an integrated and immersive discovery channel to offer new personalized experiences.
In terms of its strategy for the B2B segment, Zalando aims to become a key partner for brands and retailers, offering its entire logistics, technology, and service infrastructure, even beyond its own platform. The centerpiece of this strategy is ZEOS, its eCommerce operating system.
ZEOS already operates in 12 markets, following its expansion to Switzerland, Poland, and Spain, and enables vendors to connect with 10 different sales channels, including their own online stores and nine marketplaces, thus covering 85% of the major marketplaces in Europe.
Zalando will also add a new technological pillar: SCAYLE, ABOUT YOU’s platform. After securing over 90% of ABOUT YOU’s share capital, Zalando will consolidate its control in the summer of 2025. This addition will complement ZEOS’ software capabilities, allowing it to offer brands a more comprehensive technological solution to manage their digital operations.
Following the strong results achieved in 2024, Zalando remains optimistic about its 2025 objectives and expects its growth to further accelerate. Thus, the company is confident that «GMV and revenue will grow between 4% and 9%, driven by the successful execution of Zalando’s ecosystem strategy in both growth vectors, business-to-consumer (B2C) and business-to-business (B2B)».
Regarding the adjusted EBIT, forecasts indicate it will grow to curb between €530 million ($572.07 million ) and €590 million ($636.83 million ).
Photo: Zalando
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