Paris – Underscoring the weak demand for fashion in online channels, Zalando reported a 1.9% decline in revenue in 2023 to 10.1 billion euros and a 1.1% decline in GMV to 14.6 billion euros.
The German company noted that its adjusted full-year EBIT jumped from 185 million euros to 350 million euros, with an increase in EBIT margin of 1.7 percentage points.
Alongside announcing its 2023 numbers, Zalando strengthens its B2B business by “unlocking its logistics infrastructure, software and service capabilities to become a key enabler for brands and retailers both on and off the Zalando platform” Then he said.
Regarding its consumer-facing activities, the retailer said it would “differentiate through quality, expand our lifestyle offerings and make fashion discovery more exciting and fun.”
It claims its new “ecosystem model” will allow it to “cover a larger share” of the fashion and lifestyle e-commerce market, which faces many challenges.
“Our goal is to return to strong growth and continue to expand our margins, as reflected in our new medium-term guidance,” Zalando Co-Chief Executive Officer Robert Gentz said in a statement. Ta. “At B2C, we go beyond transactions by providing our 50 million customers across Europe with even higher quality experiences and products that fit their lifestyles, personalized content, inspiration and entertainment. B2B We look forward to leveraging our unique logistics infrastructure, software and services to enhance the business of our partners and sellers within and outside Zalando.”
The company plans to explain the strategy in more detail at a press conference later today.
He said the new strategy will help the company achieve its new financial goals over the next five years.
Zalando said it aims to generate compound annual growth rates of 5% to 10% in both revenue and GMV.
“The outlook for adjusted earnings before interest and taxes (adjusted EBIT) as a percentage of sales is 6-8% in 2028,” the report said. “Both B2C and B2B, Zalando aims to cover a market equivalent to 15 percent of the European fashion market, which is worth 450 billion euros in the long term.”
