Europe's Zalando posts GMV of $15.9 bn in FY23

14 Mar '24

2 min read

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Insights

In fiscal 2023, Zalando reported a slight decrease in GMV by 1.1 per cent to €14.6 billion ($15.9 billion) and a 1.9 per cent drop in revenue to €10.1 billion.
Despite these declines, the company's adjusted EBIT notably increased to €350 million from €185 million the previous year, enhancing the adjusted EBIT margin to 3.5 per cent, up by 1.7 percentage points.

Zalando, a leading European online fashion retailer, has reported a slight downturn in gross merchandise value (GMV) in fiscal 2023 (FY23), with a 1.1 per cent decrease to €14.6 billion (approximately $15.9 billion), and revenue dropped by 1.9 per cent to €10.1 billion (approximately $11.03 billion). However, the company saw a significant improvement in profitability, with adjusted EBIT climbing to €350 million (approximately $382 million) from €185 million in the previous year. This resulted in an adjusted EBIT margin of 3.5 per cent, a notable increase of 1.7 percentage points from FY22.

In the fourth quarter (Q4) of 2023, Zalando enhanced its focus on profitability, which led to a 25 per cent increase in adjusted EBIT to €183 million, meeting market expectations. The company also reported growth in its partner business within the Fashion Store’s GMV, which rose by nearly 2.8 percentage points to 39.2 per cent, the company said in a press release.

“Our financial discipline meant that we were able to deliver on another quarter of improved profitability,” said Dr Sandra Dembeck, CFO at Zalando. “These improvements, along with our healthy balance sheet, enable us to invest in the strategic priorities of our ecosystem vision, such as the quality of the customer experience, new fashion and lifestyle propositions, technology to increase customer engagement and expanding our B2B offering. We have the financial strength to successfully build the ecosystem for fashion and lifestyle e-commerce.”

Fibre2Fashion News Desk (DP)

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