Following a strong financial year 2020, Zalando has upgraded its growth ambitions and aims to grow gross merchandise volume (GMV) to more than 30 billion euros by 2025 and aspires to serve more than 10 percent of the total 450 billion euros European fashion market in the long-term.
In 2020, the company said in a statement, Zalando achieved 10.7 billion euros GMV, growth of 30.4 percent driven by an outstanding intake of new customers and strong Partner Program performance. Revenues in the same period grew 23.1 percent to 8 billion euros, while the company recorded an adjusted EBIT of 420.8 million euros, corresponding to a margin of 5.3 percent.
Commenting on the annual trading performance, Zalando Co-CEO Robert Gentz says: “2020 has been a year like no other. We have kept our eyes on our long-term vision to be the Starting Point for Fashion. For the coming years, our focus remains on growth and investments for the long-term.”
Zalando expects to record GMV growth of 27 to 32 percent in FY21
The company added that following a strong start to the year 2021 with expected GMV growth of around 50 percent in the first quarter, Zalando expects to grow GMV by 27-32 percent to 13.6-14.1 billion euros in the financial year 2021. Revenues will trail GMV growth as a result of the ongoing platform transition at 24-29 percent growth or 9.9-10.3 billion euros. Zalando expects to continue to grow profitably with an adjusted EBIT of 350-425 million euros.
In 2020, Zalando grew its active customer base by 25 percent to 38.7 million. The company plans to expand its footprint in Europe to eight further European markets: Croatia, Estonia, Latvia, Lithuania, Slovakia and Slovenia in 2021 and Hungary and Romania in 2022.
Zalando introduces new management board setup
To execute its growth ambitions and following Rubin Ritter’s announcement to leave his position as Co-CEO after the upcoming AGM, Zalando said its founders Robert Gentz and David Schneider will continue to lead the company as Co-CEOs. Robert Gentz will be responsible for leading on long-term strategy as well as oversee corporate affairs and corporate development, while David Schneider will continue to define and drive the strategy towards brand partners and lead Zalando’s efforts in sustainability as well as diversity and inclusion.
The company’s supervisory board has appointed Astrid Arndt to the newly created position of Chief People Officer on March 15, 2021. Arndt has been leading and building the People & Organization teams at Zalando since 2019, having joined the company in 2018. Zalando further said that current chief technology officer Jim Freeman will develop, market and grow consumer offerings in a newly created Chief Business and Product Officer role. David Schröder continues to oversee the financial development of the group as Chief Financial Officer.
Image: Zalando newsroom