Zalando unveils growth plans
Zalando has upgraded its growth ambitions and is now aiming to increase its gross merchandise volume to more than €30 billion by 2025.
The fashion retailer has also announced a longterm target to serve more than 10% of the total €450 billion European fashion market.
In 2020, Zalando grew its gross merchandise volume by 30.4% to €10.7 billion after it increased its customer and base and benefited from a strong brand partner performance. Revenues in the period climbed by 23.1% to €8 billion while adjusted EBIT came in at €420.8 million, corresponding to a margin of 5.3%,.
Due to a strong start to 2021, Zalando now expects to grow its gross merchandise value by between 27% and 32% to to 13.6 billion to €14.1 billion in its 2021 financial year. In addition, it anticipates reaching an adjusted EBIT of €350 to €425 million.
Zalando co-chief executive Robert Gentz said: “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 longterm.”
Following Rubin Ritter’s announcement that he will step down as co-chief executive after the retailer’s AGM, Zalando has also given details of a new management board set-up.
From 1 April, Zalando founders Robert Gentz and David Schneider will continue to lead the company as co-chief executives. In addition, Astrid Arndt has been appointed to the newly created position of chief people officer and current chief technology officer Jim Freeman will move to a chief business and product officer role. Meanwhile, David Schröder will continue in his position of chief financial officer.
