Zalando's sales and earnings drop in 2022

European fashion platform Zalando said GMV grew 3 percent to 14.8 billion euros in 2022 with revenue at 10.3 billion euros compared with 10.354 billion euros in the year ago.

The company's adjusted EBIT was 184.6 million euros against last year’s 468.4 million euros.

Highlights of Zalando’s FY22 performance

The company reported growth in number of active customers of 6 percent to more than 51 million last year and Zalando’s loyalty program, Plus, more than doubled its membership to over two million compared with a year ago.

“The fact that we were able to continue to grow our customer base in the current economic environment shows that our core strategy is working,” said Robert Gentz, co-CEO at Zalando in a statement.

The proportion of partners contributing to fashion store GMV was 36 percent, up six percentage points, and Zalando fulfillment solutions shipped 58 percent of partner items, up three percentage points, in the fourth quarter compared with the same quarter a year ago.

Zalando reveals 2023 guidance

For 2023, the company expects GMV to grow between 1 percent and 7 percent. In line with the platform transition and the increasing share of the partner business, revenue growth is expected to trail GMV growth. Revenue is expected to develop in the range of negative 1 percent to 4 percent compared with last year.

Zalando expects adjusted EBIT to be between 280 million euros and 350 million euros in 2023. The company expects to approach the higher end of its 3-6 percent adjusted EBIT margin goal by 2025 and reach double-digit margins in the long term.

“We remain confident that we will return to double-digit GMV growth in the mid term, by further executing on our vision and strategy, and eventually serve 10 percent of the 450 billion-euro European fashion market,” added Gentz.