Berlin-based fashion and lifestyle e-commerce giant Zalando has increased its 2024 forecast following a solid third-quarter performance. The company, which has seen steady growth in its customer base and online demand, now expects higher full-year results for its gross merchandise volume (GMV), revenue, and adjusted Ebit, marking a positive outlook for the remainder of the year.
Zalando’s GMV grew by 7.8 percent in Q3 to reach €3.5 billion, while revenue rose by 5 percent year-over-year, totaling €2.4 billion. Additionally, the company’s adjusted earnings before interest and taxes (Ebit) saw substantial growth, increasing from €23 million to €93 million. This surge in performance is attributed to Zalando’s ecosystem strategy, which focuses on enhancing the customer experience, expanding lifestyle offerings, and opening its B2B infrastructure to support brand partners.
The company’s active customer base has now surpassed 50 million, showcasing sustained growth and high demand for Zalando’s online marketplace. This strong consumer interest has enabled Zalando to upgrade its annual GMV growth target to between 3 percent and 5 percent, up from the original 0 percent to 5 percent range. Similarly, revenue is projected to increase by 2 percent to 5 percent, compared to the previously anticipated range of 0 percent to 5 percent. The company’s adjusted EBIT outlook has also been raised to a range of €440 million to €480 million, up from the earlier forecast of €380 million to €450 million.
In response to rising demand, Zalando plans to invest strategically in customer loyalty initiatives, enhanced shopping experiences and an expansion of its logistics network across Europe.
“Customer demand accelerated across our industry during the third quarter, with a strong start into the FW season in contrast to the slow start last year,” said Robert Gentz, co-CEO of Zalando. “We are very well positioned to capture growth opportunities through our ecosystem strategy, which allows us to serve an even larger share of the online fashion and lifestyle market.”
Zalando also announced plans to lower its capital expenditure (CapEx) forecast for 2024. It now aims to invest around €200 million, down from the previous range of €250 million to €350 million. This adjustment reflects Zalando’s continued focus on efficient spending while enhancing its infrastructure to support ongoing growth.
The company will release its detailed Q3 financial results on Nov. 5, 2024.
