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 AI engagement are delivering material progress across B2C and B2B.

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

• B2B segment continues double-digit growth, with ZEOS now serving nine marketplaces, including ASOS.

• Investments focused on customer loyalty, lifestyle propositions, fashion discovery, and logistics network expansion.

Financial highlights

• Q3 2024 GMV reached €3.5 billion, up 7.8% year-over-year; revenue grew 5% to €2.4 billion; adjusted EBIT was €93 million (margin 3.9%, up 2.9pp YoY).

• For the first nine months, GMV grew 4.4% to €10,618m, revenue 2.6% to €7,273m, and adjusted EBIT rose to €293m (margin 4.0%).

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

• Free cash flow for 9M 2024 was €147.6m, up from -€26.6m in 9M 2023.

• Net income for Q3 2024 was €44.3 million, compared to a net loss of €8.2 million in Q3 2023.

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 guidance lowered to around €200 million.

• Acceleration of top-line growth and continued margin expansion expected into 2025, in line with midterm guidance.

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