Zalando Breaks Even
Zalando, Europe’s largest online-only fashion retailer, has reported breakeven results for the first time in its 13-year history.
Profitability on track
Zalando announced revenues of €4.7 billion and adjusted EBIT of €28 million in 2018, marking its transition to profitability. CEO Rubin Ritter said the company was “well on track” to meet its targets for this year and beyond.
Fast growth continues
Zalando’s gross merchandise volume (GMV) increased by 26% year over year to €10.6 billion in 2018, while active customers reached 44 million, up 23% on 2017. Zalando said its private label business and partnerships with brick-and-mortar retailers were driving growth.
International expansion ahead
Zalando plans to accelerate its international expansion, particularly in southern Europe, to further boost growth. The company aims to reach more than 50 million active customers across all markets by 2023. “Our goal is to become the leading fashion platform in Europe,” Ritter said.
Profitable and growing
The results highlight Zalando’s progress in building a sustainable business model that can deliver both growth and profitability. Despite Zalando’s breakeven performance, Ritter said the company’s goal remains to achieve “highest profitability” among peers. The retailer will continue balancing investments in growth areas with strict cost controls and improving efficiency, while keeping a close eye on changing consumer habits and the threat of competitors.
