Zalando (ZAL) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong growth in both B2C and B2B segments, driven by robust consumer demand and a strong start to the autumn-winter season, with active customers surpassing 50 million.

• The updated ecosystem strategy and investments in loyalty, logistics, and digital engagement tools, including the rollout of a new free, points-based loyalty program, supported performance.

• B2B segment continued double-digit growth, with ZEOS expanding to support 9 major e-commerce platforms, including ASOS.

• Adjusted EBIT margin improved to 4.0% for the first nine months, reflecting higher gross margin and lower fulfillment costs.

• Net income for the first nine months reached €131.1 million, a significant improvement from €10.0 million in the prior-year period.

Financial highlights

• Q3 2024 GMV reached €3.5 billion, up 7.8% year-over-year; revenue grew 5.0% to €2.4 billion.

• Adjusted EBIT for Q3 was €93 million (margin 3.9%), up from €23 million (margin 1.0%) in Q3 2023.

• For the first nine months, GMV grew 4.4% to €10,618 million, revenue 2.6% to €7,273 million, and Adjusted EBIT reached €293 million.

• Group gross margin improved to 40.7% in Q3 2024, up 4 percentage points year-over-year.

• Cash and cash equivalents stood at €2.4 billion at Q3 2024, nearly €500 million higher year-over-year.

Outlook and guidance

• Full-year 2024 guidance: GMV growth of 3–5%, revenue growth of 2–5%, and adjusted EBIT between €440 million and €480 million; CapEx for 2024 lowered to around €200 million.

• Focus remains on returning to growth, increasing profitability, and investing in future topline growth initiatives.

• Midterm targets include 5–10% CAGR growth and 6–8% Adjusted EBIT margin by 2028.