What: Zalando reports strong 2024 performance with EUR 15.3 billion GMV and projects 4-9% growth. Zalando's ecosystem strategy drives 4.5% customer growth to 51.8 million users, with expectations of accelerated growth in 2025 through B2C and B2B expansion.

Why it is important: Zalando's ecosystem approach, combining B2C and B2B strategies with advanced fulfillment capabilities, provides a blueprint for modern retail platform evolution.

Zalando has demonstrated remarkable growth in 2024, with its ecosystem strategy yielding impressive results across multiple metrics. The company's gross merchandise value reached €15.3 billion, while revenue climbed to EUR 10.6 billion, representing increases of 4.5% and 4.2% respectively. This growth was accompanied by significant improvements in profitability, with adjusted EBIT rising to EUR 511 million from EUR 350 million, and net income nearly tripling to EUR 251.1 million. The company's success in customer engagement is evident in its expanded active customer base of 51.8 million, who placed 251 million orders with an increased average basket size of EUR 60.90. Zalando's strategic initiatives included onboarding premium brands like Versace menswear and Marine Serre, while also securing an exclusive partnership with Diane von Furstenberg in Europe. Looking ahead to 2025, Zalando projects growth between 4% and 9%, supported by its partnership with Next's ZEOS logistics operation and planned expansion into new European markets.

IADS Notes: Zalando's optimistic outlook for 2025 builds upon significant developments from the past year. In November 2024, the company demonstrated its digital innovation capabilities with the implementation of 3D virtual fitting rooms and a virtual personal assistant, contributing to a 7.8% increase in GMV to EUR 3.5 billion. This technological advancement has been further strengthened by the strategic acquisition of About You for EUR 1.1 billion in December 2024, a move aimed at consolidating Zalando's position against Chinese competitors in the European market. The partnership with Next for continental European fulfillment through ZEOS aligns with this expansion strategy, showcasing how Zalando is leveraging both technological innovation and strategic partnerships to maintain its competitive edge.

Zalando has strong 2024 results, expects more of the same in 2025