(Reuters) -Online fashion marketplace Zalando said on Thursday it expected higher profits in 2025, supported by further growth in both its online platform and the business servicing other retailers.
Zalando Forecasts Profit Rise with Upmarket Strategy
By Linda Pasquini and Helen Reid
(Reuters) -Online fashion marketplace Zalando, expects higher profits in 2025 and stronger sales growth, it said on Thursday, as it tries to attract more customers by increasing its range of brands.
It said the number of active customers and average order value on Zalando increased last year, and the retailer pointed to data that showed online shopping grew in Europe overall as it recovered from the slump that followed shoppers' post-pandemic return to high street stores.
While online retailers, such as Shein and Temu have lured inflation-weary Europeans to their cut-price clothes and accessories, Zalando has brought more designer brands onto its platform. In February it became the exclusive retailer for Diane von Furstenberg in Europe.
Zalando has also added more beauty brands and sports brands, and in a presentation on Thursday cited growing sales of running shoes priced higher than 100 euros ($108).
Zalando, whose biggest market is Germany, said it plans to launch in Bulgaria, Greece and Portugal this year, which would bring its total number of markets to 28.
Shares in Zalando, which have gained significantly over the last year, were down around 2% by 0810 GMT.
Zalando expects revenue and gross merchandise volume (GMV) to rise between 4% and 9% in 2025, compared with a 4.2% revenue rise to 10.6 billion euros and a 4.5% growth in GMV to 15.3 billion euros last year.
It expects adjusted earnings before interest and taxes (EBIT) of 530 million euros to 590 million euros for 2025, up from 511 million euros in 2024.
The guidance excludes Zalando's planned acquisition of smaller online fashion retailer About You, expected to close around the middle of the year 2025.
Zalando's active customers increased to 51.8 million by the end of 2024, from 49.6 million the year before, while the average order value was 60.9 euros, up from 59.8 euros.
($1 = 0.9246 euros)
(Reporting by Linda Pasquini in Gdansk; editing by Milla Nissi and Barbara Lewis)
