In 2024, Zalando plans to return to growth, further increase profitability, and invest in future growth. The company expects GMV and revenue to grow 0 to 5 percent in 2024 compared with 2023 and expects adjusted EBIT to be between 380 million euros and 450 million euros.
Zalando, a major European online fashion retailer headquartered in Berlin, Germany, was founded in 2008 and has grown to over 51 million active users across 25 European markets. It offers a wide variety of fashion items for men, women, and children, including shoes, clothing, and accessories from top brands, and has a beauty selection.
They are known for their easy online shopping experience, free returns, multiple payment options, and mobile apps available for iOS and Android, and they also run a private sales website called Zalando Privé, which offers discounts on designer brands.
Zalando just released their full-year results for 2023 on March 13, 2024. While revenue declined slightly year-over-year (down 1.9% to €10.1 billion), they achieved profitability.
- Zalando's profit margin increased significantly (up to 3.5% from 1.8% in 2022), driven by a focus on cost control.
- Although revenue dipped slightly, it still met analyst expectations.
- Zalando forecasts revenue growth of around 7% annually over the next three years.
- Their successful partner business model allows brands to sell through Zalando's platform. The share of partner sales is growing, and more brands are using Zalando's fulfillment services.
[Sources Zalando, Wikipedia, Google, FashionUnited]
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