Zalando triples profit as ecosystem strategy pays off

After a strong 2024, Zalando expects growth to accelerate even further this year. The fashion platform’s ecosystem strategy is proving successful and About You‘s integration should further strengthen its market position.

Net profit tripled

Zalando’s gross merchandise volume grew by 4.5 % to 15.3 billion euros last year, while turnover increased by 4.2 % to 10.6 billion. Operating profit (EBIT) rose by 46 % to 511 million euros and net profit even tripled to 251 million euros. Zalando points to efficiency improvements and also sees an increase in the number of active customers by 4.5 % to 51.8 million.

With these strong figures, the fashion platform is beating both analysts’ expectations and its own forecasts. This year, the retailer expects further improvement with gross merchandise volume and turnover growing 4 to 9 % and operating profit rising to between 530 and 590 million euros. “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”, co-CEO Robert Gentz hopes.

Expansion plans

This year, Zalando will expand its platform to Bulgaria, Greece and Portugal, while also expanding its loyalty program Zalando Plus further. Zalando Beauty will be available in thirteen countries after expanding to Finland an Spain, while its outlet Lounge by Zalando will be expanded to five more countries to span a total of 22 markets. Logistics platform Zeos will partner with British retailer Next and expand its services to ten additional markets where Next is already active.

Zalando hopes to complete the acquisition of About You by the summer of this year. The company already holds 90 % of the capital. The acquisition will enable Zalando to execute a two-pronged brand strategy, with two different and separate experiences to better serve customers and partners.