What's Happening?
German online fashion retailer Zalando has reported a substantial increase in sales for the third quarter of 2025. The company's sales rose by 26.5% year-on-year, reaching £2.6 billion for the three months ending September 30. This growth is largely attributed
to Zalando's acquisition of the ecommerce company About You in July. The company's earnings before interest and taxes (EBIT) also increased from £82 million to £84.5 million during this period, highlighting its focus on profitable growth. Additionally, Zalando's active customer base expanded to 61.4 million from 50.3 million the previous year, reflecting the successful integration of About You and growth in its core markets.
Why It's Important?
The significant sales increase underscores Zalando's strategic expansion and its ability to leverage acquisitions for growth. By integrating About You, Zalando has not only expanded its customer base but also strengthened its position in the competitive online fashion retail market. This growth is crucial as it positions Zalando to better compete with other major players in the industry, potentially leading to increased market share. The company's focus on profitable growth, as evidenced by the rise in EBIT, suggests a sustainable business model that could attract more investors and stakeholders.
What's Next?
Looking ahead, Zalando has confirmed its full-year guidance for 2025, forecasting EBIT between £485 million and £529 million, along with sales growth of 4% to 7%. The company has also made strategic leadership changes, appointing Anna Dimitrova as its new CFO effective January 1, 2026, and Thomas Schwulera as vice president for beauty. These appointments are expected to drive further growth and innovation within the company, particularly in the beauty segment, which has seen double-digit growth over the past year.
