Zalando Accelerates Growth and Profitability in 1Q25

Zalando, Europe’s leading online fashion and lifestyle platform, delivered a strong start to 2025 by accelerating both growth and profitability in the first quarter. The company confirmed its full-year guidance, reinforcing confidence in its dual Business-to-Consumer (B2C) and Business-to-Business (B2B) strategy.

In Q1, gross merchandise volume (GMV) rose by 6.5% year-over-year to €3.5 billion, while revenue increased 7.9% to €2.4 billion. Adjusted earnings before interest and taxes (EBIT) reached €46.7 million, reflecting a 0.7 percentage point improvement in profit margin to 1.9%.

“Customer and partner engagement with our expanding ecosystem continues to grow,” said Co-CEO David Schroeder. “In B2C, we saw strong momentum from end-of-season sales, a promising spring/summer kick-off, and a record number of active customers. In B2B, ZEOS is gaining traction, particularly through logistics and software offerings.”

Zalando’s B2C revenue increased 7.6%, driven by a surge in active customers to 52.4 million, up 2.9 million from the previous year. Profitability in the segment improved by 0.7 percentage points to 1.9%. The upgraded loyalty program, Zalando Plus, now active in 13 markets, has already attracted over 15% of customers, with early indicators showing increased order frequency and customer value.

Further strengthening its lifestyle credentials, Zalando reported double-digit growth in categories such as Sports, Designer, Beauty, and its Lounge by Zalando outlet. Zalando also rolled out its interactive “boards” feature across all markets, offering curated content tied to lifestyle themes.

On the B2B side, revenue jumped 11.6% to €240 million, with adjusted EBIT at €5.8 million and a stable 2.4% margin. Growth continues to stem from ZEOS Fulfilment, which combines Zalando Fulfilment Solutions and multi-channel services.

A key milestone was reached in Q1 with ZEOS becoming the preferred logistics partner for TikTok Shop in Germany, France, and Italy. The first partner went live on TikTok Shop Germany, signaling Zalando’s entrance into social commerce logistics.

Despite a volatile geopolitical and economic landscape, Zalando reaffirmed its 2025 outlook. The company expects GMV and revenue to grow between 4% and 9%, with adjusted EBIT projected between €530 million and €590 million. This guidance excludes any effects from the anticipated acquisition of ABOUT YOU, a Hamburg-based e-commerce company.