Germany's Zalando's Q1 revenue tops $2.58 bn, GMV hits $3.76 bn
Active customers rose to 52.4 million, with GMV reaching €3.5 billion (~$3.76 billion).
The company highlighted gains from its loyalty programme and ZEOS B2B platform and reaffirmed its 2025 guidance despite economic uncertainty.
Berlin-based online retailer Zalando has recorded revenue of €2.4 billion (~$2.58 billion) in the first quarter (Q1) of 2025, up 7.9 per cent year-over-year (YoY). The growth reflects improved profitability and progress in its strategy to become a leading pan-European fashion and lifestyle e-commerce platform, focusing on both business-to-consumer (B2C) and business-to-business (B2B) segments.
Zalando's number of active customers over the last 12 months grew to 52.4 million, up from 49.5 million in Q1 2024. Total orders increased to 58.5 million from 55.2 million YoY. The average number of orders per active customer remained unchanged at 4.9, while the average basket size rose slightly to €61.1 from €60.4. The net income for the company turned positive at €9.9 million, recovering from a loss of €8.9.
The group's gross merchandise volume (GMV) in Q1 grew by 6.5 per cent YoY to €3.5 billion (~$3.76 billion), while B2C revenue rose to €2.2 billion, and B2B revenue reached €240 million. The adjusted group EBIT climbed to €46.7 million, with the margin improving to 1.9 per cent. B2C adjusted EBIT grew to €41.0 million, and B2B EBIT was €5.8 million.
Zalando has reported €2.4 billion (~$2.58 billion) revenue in Q1 2025, up 7.9 per cent YoY, driven by growth in both B2C and B2B segments. Active customers rose to 52.4 million, with GMV reaching €3.5 billion (~$3.76 billion). The company highlighted gains from its loyalty programme and ZEOS B2B platform and reaffirmed its 2025 guidance despite economic uncertainty.
In the B2B segment, Zalando's revenue growth was driven by its strategy of opening logistics infrastructure, software, and service capabilities through the ZEOS operating system. By enabling brands' and retailers' e-commerce transactions both on and off its platform, the company positioned itself as a key enabler of digital retail operations. Margin stability reflected operational efficiency in delivering these services.
The company's B2C segment continued to show strong momentum, driven by its focus on loyalty, lifestyle, and personalisation. The company enhanced its differentiation by positioning itself as a lifestyle destination, offering tailored inspiration and entertainment. This strategy supported growth in active customers and improved profitability. The expanded rollout of the Zalando Plus loyalty programme, now active in 13 markets, aims to deepen customer engagement and boost order frequency. Early results indicate strong potential to increase customer lifetime value, Zalando said in a press statement.
For full-year 2025, Zalando expects both GMV and revenue to grow between 4 to 9 per cent compared to 2024, with adjusted EBIT projected to range between €530 million and €590 million despite ongoing geopolitical and macro-economic uncertainty. This forecast excludes any potential impact from the planned acquisition of Hamburg-based About You.
'Our ecosystem strategy is progressing well, and customers and partners are embracing our expanding offerings. Growth in B2C accelerated due to a successful end-of-season sale, a promising start to the spring/summer season supported by the continued roll-out of our updated loyalty program Zalando Plus and a new high of active customers,' said David Schroeder, co-chief executive officer (CEO) at Zalando. 'In B2B, we are delighted to see a continuation of our double-digit growth trajectory as we are working to advance our ZEOS offering with a particular focus on logistics and software solutions this year.'
Fibre2Fashion News Desk (SG)
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