Zalando (ZAL) Q4 2024 earnings summary

Executive summary

• Achieved and exceeded 2024 financial targets with GMV up 4.5% to €15.3B and revenue up 4.2% to €10.6B, driven by strong execution of ecosystem strategy and investments in platform and services.

• Adjusted EBIT rose to €511M (4.8% margin), surpassing guidance and up from €350M (3.4%) in 2023.

• Active customers reached 51.8M, a 4.5% year-over-year increase, with improved engagement and loyalty initiatives.

• Announced intention to acquire ABOUT YOU, aiming to accelerate growth, unlock synergies, and enhance logistics and software capabilities, with closing anticipated in summer 2025.

Financial highlights

• GMV grew by 4.5% to €15.3B; revenue increased by 4.2% to €10.6B, both in the upper half of guidance.

• Adjusted EBIT reached €511M, exceeding guidance by over €30M, with a margin of 4.8% (up from 3.5% in 2023).

• B2C revenue grew 3.8% to €9.7B; B2C adjusted EBIT was €489M (margin over 5%), up €178M year-over-year.

• B2B revenue rose 11.5% to €953M; adjusted EBIT was €23M (margin 2.4%), driven by ZEOS logistics expansion.

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

Outlook and guidance

• For 2025, expects GMV and revenue growth of 4%-9% year-over-year, with adjusted EBIT between €530M and €590M (margin ~5%).

• Midterm (2028) targets: GMV and revenue CAGR of 5%-10%, adjusted EBIT margin of 6%-8%.

• Combined group (post-ABOUT YOU) targets adjusted EBIT margin of 10%-13%.

• CapEx expected at €180M–€280M; net working capital to remain negative.

• Guidance excludes financial impact from ABOUT YOU consolidation, pending regulatory approval.