Due to persistently gloomy growth prospects, Zalando intends to focus on strengthening profitability. "The company expects to approach the upper end of its margin target of three to six percent by 2025 and achieve double-digit margins over the long term," Robert Gentz, co-head of the online fashion retailer, said on Tuesday. To achieve this, Zalando wants to offer logistics services to other companies, among others.
Until now, only suppliers who also sold their goods via the Zalando platform could use this service. The planned restructuring of the Group also includes the elimination of several hundred of the approximately 17,000 jobs announced in February.
How sales and profits fall
Last year, the gross value of goods (GMV) of all goods sold via the Zalando platform rose by three percent to 14.8 billion euros. Group sales, on the other hand, shrank by 0.1 percent to EUR 10.3 billion. Adjusted operating profit slumped to 184.6 million euros from 468.4 million euros.
In 2023, this is expected to rise again to 280 to 450 million euros. GMV can be expected to grow by one to seven percent, while Group revenues are expected to increase by a maximum of four percent, Zalando said.
The figures were not well received on the stock market: The Zalando share slipped by a good three percent in the business of Lang & Schwarz. The figures presented were slightly below expectations, said a stock market expert.