Zalando Upgrades 2024 Full-Year Outlook as Strong Third-Quarter Consumer Demand Drives Number of Active Customers Above 50 Million, Validating Ecosystem Strategy

• Third-quarter gross merchandise volume (GMV) rises 7.8% to 3.5 billion euros, revenue increases 5.0% to 2.4 billion euros and adjusted earnings before interest and taxes (adjusted EBIT) climb from 23 million euros to 93 million euros
• Full-year 2024 GMV now expected to grow between 3% and 5%, up from the previous guidance range of 0% to 5%. Revenues are now expected to grow 2% to 5%, up from the previous guidance range of 0% to 5%
• Full-year 2024 adjusted EBIT now expected to come in between 440 and 480 million euros, up from a previous outlook of between 380 million euros and 450 million euros
• Zalando targets capex investments of around 200 million euros in the full year, compared with a previous guidance of between 250 million euros and 350 million euros
• Number of active customers continues positive trend and stands above 50 million

Berlin, 10 October 2024 // Zalando upgraded its full-year financial outlook as its ecosystem strategy around quality, lifestyle expansion, inspiration and opening up its B2B capabilities enabled the company to capture increasing consumer demand in the third quarter amid an industry-wide strong start to the fall/winter season. The number of active customers continued its positive trend and stands above 50 million.

According to preliminary figures, third quarter GMV rose by 7.8% from a year earlier to 3.5 billion euros, and revenue rose by 5.0% from a year earlier to 2.4 billion euros, while adjusted EBIT increased from 23 million to 93 million euros.

For the full-year 2024, Zalando now predicts gross merchandise volume (GMV) to grow between 3% and 5%, compared with the previous 0% to 5% growth outlook. Revenues are now expected to grow 2% to 5%, up from the previous guidance range of 0% to 5%. Adjusted EBIT is now expected to come in between 440 million euros and 480 million euros, up from a previous guidance of between 380 million euros and 450 million euros. Zalando targets capex investments of around 200 million euros in the full year, compared with a previous guidance  between 250 million euros and 350 million euros.

“Consumer demand has increased across the industry in the third quarter, with a strong start to the fall/winter season, compared to last year's slow beginning,” said Robert Gentz, Zalando Co-CEO. “Our new ecosystem strategy, empowering us to cover a larger share of the fashion and lifestyle e-commerce market, positions us very well to capture growth opportunities.”

Looking forward, Gentz said the company is now doubling down on its investments in key strategic initiatives, such as driving customer loyalty, making fashion discovery more inspiring and entertaining, and further strengthening its European logistics network, in line with its updated ecosystem strategy.  

Zalando will report results for the third quarter
on November 5, 2024.