Zalando appears to be like again on a profitable 12 months, with larger income, elevated earnings, and extra prospects. The corporate expects progress acceleration, pushed by its profitable ecosystem technique. Zalando can even develop into three new nations this 12 months: Portugal, Greece, and Bulgaria.
This was reported by Zalando in its monetary assertion. The net vogue big had already introduced in mid-January that it had discovered its solution to progress once more, with a 4 p.c improve in income final 12 months, after two years of declining gross sales. At the moment, the figures had been nonetheless provisional.
3 times extra revenue
Income progress reached 4.2 p.c, in line with the brand new report for 2024, whereas the gross merchandise quantity (GMV) grew by 4.5 p.c. Zalando ended the 12 months with a web revenue of 251.1 million euros, greater than thrice larger than in 2023. The variety of lively prospects additionally grew by 2.2 million, to an all-time excessive of 51.8 million customers.
Zalando by no means had this many shoppers
Zalando attributes the sturdy efficiency to the “profitable execution of Zalando’s ecosystem technique throughout each progress vectors: business-to-consumer (B2C) and business-to-business (B2B)”.
Ecommerce ecosystem
A 12 months in the past, when publishing the 2023 figures, Zalando positioned itself as an ecommerce ecosystem, shifting its focus from simply B2C to additionally embody B2B. The corporate now experiences individually on each divisions. This reveals that enterprise income elevated by 11.5 p.c in 2024. In response to co-CEO Robert Gentz, the brand new technique is paying off:
‘Our ecosystem technique is our thrilling new North Star.’
Gentz continues: “It has already contributed to a powerful monetary efficiency in 2024, and we now speed up our execution efforts and make investments to seize future progress.” Zalando’s shopper division continues to be about ten occasions bigger than its enterprise division. The deliberate acquisition of About You is anticipated to remodel Zalando right into a B2B powerhouse.
Launch in 3 new markets
The up to date loyalty program Zalando Plus will likely be additional rolled out this 12 months, following its introduction in Germany, Italy, Spain, France, the Netherlands, Switzerland, and Austria. Moreover, Zalando will turn into lively in Portugal, Greece, and Bulgaria, increasing its protection to twenty-eight nations in 2025.
The corporate is increasing for the primary time since 2022
This marks the corporate’s first worldwide growth since 2022, when it entered Hungary and Romania. The 12 months earlier than, Zalando launched in Lithuania, Slovakia, and Slovenia.
Outlook
“In 2024, Zalando demonstrated that even in a reasonably muted macroeconomic surroundings, the corporate is ready to discover pockets of progress”, the report states. For this 12 months, the corporate expects income and GMV progress between 4 and 9 p.c, excluding About You.