Zalando (ZAL) Q4 2024 (Q&A) earnings summary

Executive summary

• Achieved strong growth in 2024, with revenue up 4.2% to €10.57bn and adjusted EBIT up 46% to €511m, surpassing guidance and expanding the pan-European fashion & lifestyle e-commerce ecosystem.

• Active customer base grew 4.5% to 51.8 million, with more customers served than ever before.

• Strategic acquisition of ABOUT YOU announced, expected to close in summer 2025, targeting significant value creation, synergies, and ecosystem expansion.

• Updated strategy focuses on loyalty program expansion, lifestyle category growth, B2B/logistics, and software enhancements.

• Sustainability and diversity remain core to long-term ambitions, with net-zero targets and expanded D&I initiatives.

Financial highlights

• Group GMV rose 4.5% year-over-year to €15.3bn; revenue up 4.2% to €10.6bn.

• Adjusted EBIT increased to €511m (4.8% margin), exceeding guidance; adjusted EBITDA margin improved from 3.5% in 2023 to 4.8% in 2024.

• Free cash flow reached €379m; cash and cash equivalents at €2.6bn at year-end.

• B2C revenue up 3.8% to €9.7bn; B2C adjusted EBIT margin improved to 5.1%.

• B2B revenue grew 11.5% to €953m, with adjusted EBIT margin at 2.4%.

Outlook and guidance

• 2025 guidance: GMV and revenue growth of 4–9%, adjusted EBIT €530–590m, capex €180–280m.

• Mid-term (2023–2028) target: 5–10% CAGR in GMV and revenue, adjusted EBIT margin 6–8% by 2028.

• Guidance excludes impact from ABOUT YOU consolidation, expected to close summer 2025.

• Both active customer growth and GMV per customer are expected to drive 2025 growth.

• No major shifts anticipated in gross margin or fulfillment costs for 2025; cost structure to remain stable.