Zalando (ZAL) Q1 2025 earnings summary

Executive summary

• Achieved 6.5% GMV growth and 7.9% revenue growth year-over-year in Q1 2025, driven by strong end-of-season sales, spring/summer momentum, and robust B2C/B2B performance.

• Adjusted EBIT rose to €46.7 million (1.9% margin), up from €28.3 million, with margin improving by 0.7 percentage points year-over-year.

• Net income improved to €9.9 million from a loss of €8.9 million in Q1 2024.

• Continued execution of ecosystem strategy, advancing B2C and B2B growth, and investing in future opportunities.

• About You acquisition progressing, with 91.5% of shares secured, regulatory approvals pending, and closing expected by summer.

Financial highlights

• GMV reached €3.5 billion, up 6.5% year-over-year; revenue grew 7.9% to €2.42 billion, supported by strong retail, ZMS, and B2B performance.

• Adjusted EBIT increased to €46.7 million (1.9% margin), up from €28.3 million (1.3% margin) in Q1 2024.

• Gross margin improved by 0.9 percentage points to 39.1%, mainly due to retail inventory sales and ZMS growth.

• Cash and cash equivalents at quarter-end were €1.96 billion, down from €2.59 billion at year-end 2024, mainly due to inventory purchases and About You tender offer escrow.

• Free cash flow was negative at €-192 million, reflecting investments and acquisition-related outflows.

Outlook and guidance

• Full-year 2025 guidance confirmed: GMV and revenue expected to grow 4–9% year-over-year; adjusted EBIT forecasted between €530–590 million; CAPEX of €180–280 million; negative net working capital.

• Guidance excludes potential impacts from the consolidation of About You, with deal closing expected in summer.

• Continued investment in loyalty program and ecosystem strategy to drive future growth.