Zalando Surpasses Q1 Revenue Expectations, Reaffirms 2025 Target

LONDON: European online fashion seller Zalando announced first-quarter revenue that exceeded expectations, driven by more customers and a positive beginning to spring and summer sales, while reaffirming its guidance for 2025. The multi-brand platform offering clothing, footwear, and accessories reported revenue of 2.420 billion euros ($2.74 billion) for the quarter ending March 31, surpassing analysts' average prediction of 2.367 billion.

Zalando's active customer count increased to a record 52.4 million, compared to 49.5 million in the same quarter last year. Adjusted earnings before interest and taxes (EBIT) reached 46.7 million euros in the first quarter, an increase from 28.3 million a year earlier. Revenue from Zalando's logistics and software services offered to other retailers increased by 11.6 per cent compared to the first quarter of last year, reaching 240 million euros.

ALSO READ: Oil Up 1% as Dip Attracts Buyers, But Oversupply Concerns Linger

TikTok Shop, the retail branch of the social media platform TikTok, announced that it began utilising Zalando's ZEOS logistics service for vendors in Germany, France, and Italy during the first quarter. Zalando affirmed its outlook "despite a rapidly evolving geopolitical and macroeconomic landscape," as global trade tariffs prompt numerous retailers to lower their projections for 2025. Zalando anticipates an increase of 4 per cent to 9 per cent in sales and gross merchandise volume (GMV) for 2025.

($1=0.8831 EUR)