German online fashion retailer Zalando has reported a 7.9% revenue increase to €2.42bn ($2.74bn) in the first quarter (Q1) of 2025 (FY25), from €2.24bn during the same period of the previous year.
The company’s business-to-business segment saw revenue rise to 11.6%, largely attributable to its ZEOS fulfilment services.
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Zalando’s gross merchandise volume (GMV) followed suit with a 6.5% climb to €3.49bn.
Its adjusted earnings before interest and taxes (EBIT) reached €46.7m, meeting market expectations and showing a substantial rise from the previous year’s €28.3m.
This financial performance led to an uptick in profit margin by 0.7 percentage points year-on-year, reaching 1.9%.
Zalando’s net income for the quarter was €9.9m, bouncing back from a net loss of €8.9m in the corresponding quarter of the previous year.
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By GlobalDataThe achieved a record high with 52.4 million active customers in Q1 FY25 and 58.5 million orders with an average basket size valued at €61.1.
Zalando co-CEO David Schroeder stated: “Our ecosystem strategy is progressing well, and customers and partners are embracing our expanding offerings.
“Growth in B2C accelerated due to a successful end-of-season sale, a promising start to the spring/summer season supported by the continued roll-out of our updated loyalty programme Zalando Plus and a new high of active customers. In B2B, we are delighted to see a continuation of our double-digit growth trajectory as we are working to advance our ZEOS offering with a particular focus on logistics and software solutions this year.”
Despite the current volatile geopolitical and economic environment, Zalando maintained its full-year forecast for 2025, expecting both GMV and revenue to grow by 4% to 9% compared to the previous year, with adjusted EBIT anticipated between €530m and €590m.
These projections do not take into account possible effects from the proposed acquisition of Hamburg-based ABOUT YOU.
