Zalando maintains quarterly sales and improves profitability

In the first quarter, the German portal reported sales volumes of €3.3 billion (+1.3%) and sales of €2.2 billion (+0.6%). Above all, Zalando posted a profit before tax and interest of 28.3 million euros, a far cry from the loss of 700,000 euros recorded in the first quarter of 2023.

The first results for 2024 confirm the relevance of the strategy announced by the company in March. It is a strategy that aims to build what would be the leading pan-European fashion and lifestyle e-commerce ecosystem, notably by tightening up the offering and improving the customer experience. This applies to both BtoC and BtoB activities (see our dedicated article).

The BtoB business is up 13.3% on the first quarter of 2023, with revenues of €215 million. A growth driver at a time when sales generated by BtoC are contracting slightly, from €2.06 billion to €2.02 billion.

Sandra Dembeck, Zalando’s Chief Financial Officer, is delighted that “we’re back on the growth track”. “B2C customers are showing greater interest in our quality assortment, our digital tools, our proposals and our inspiring content. B2B customers are signing up to our unique offering. Our two growth vectors are solid and contributing to the results, which demonstrates the strength of our projects.”

The Group is maintaining its projections for 2024, which range from stable sales volumes to 5% growth. Earnings before tax and interest should fluctuate between 380 and 450 million euros.

Last year, Zalando generated sales of €14.6 billion, down 1.1%. Sales fell by 1.9% to €10.1 billion, confirming the company’s ceiling for the 2022 financial year, which led to announcements of cuts in the company’s workforce.