(Reuters) – Zalando, Europe’s number one online fashion retailer, said on Wednesday it plans to return to growth and improve profitability in 2024, after reporting a decline in sales across the country. year, in accordance with its own forecast range.
Zalando forecasts that gross merchandise value (GMV), a key revenue metric that measures the value of all goods sold, and turnover will both increase between 0% and 5% for the current year.
In 2023, gross merchandise value fell by 1.1% to €14.6 billion and turnover fell by 1.9% to €10.1 billion.
The decline in sales was greater in the region including Germany, Switzerland and Austria than in other European countries, the company said.
Zalando is targeting annual growth rates of 5-10% for both gross merchandise value and revenue through 2028.
The aim is to achieve an adjusted earnings before interest and tax (Ebit) margin of 6-8% by the same year, the company added.
For the current year, Zalando expects adjusted Ebit to be between €380 million and €450 million, compared to €350 million in 2023.
(Reporting Linda Pasquini and Chiara Holzhaeuser; Lina Golovnya, editing by Kate Entringer)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
