In a significant development within the online fashion retail sector, Zalando has announced a remarkable 23% growth in its revenues for the fourth quarter of the year. This impressive increase is largely attributed to strategic acquisitions and expanding operational efficiencies. The company’s recent financial report underscores its robust performance, highlighting the pivotal role played by the acquisition of About You, a fellow German online retailer, which greatly contributed to Zalando’s positive numbers in Q4.

Strong Q4 Performance Driven by Strategic Acquisition

Revenue Growth and Key Figures

Zalando’s revenues surged by 23% in Q4, reaching approximately 4.07 billion euros. This boost propelled the company’s annual revenue to 12.35 billion euros, marking a 16.8% increase compared to the previous year. These figures aligned closely with market analyst expectations, illustrating the company’s effective growth strategies amid a competitive landscape.

• Quarterly revenue: 4.07 billion euros
• Yearly revenue: 12.35 billion euros
• Active customers: 62 million (post-acquisition)
• Average spending per customer: €62.80 in 2025

The Role of Acquisition

The acquisition of About You, completed in the third quarter, significantly amplified Zalando’s market reach and customer base. Prior to the purchase, Zalando’s active customer count stood at approximately 52.9 million, which increased notably after the integration of About You’s customer base. This move exemplifies Zalando’s strategy to accelerate growth through targeted acquisitions, enabling it to deepen its market penetration across Europe and beyond.

Impact on Customer Metrics

• Customer base expansion: Approximately 9 million new active customers post-acquisition
• Contribution to revenue: Increased B2C sales and enhanced platform offerings

Financial and Strategic Drivers of Growth

Operational Innovations and Ecosystem Strategy

Zalando has been proactive in implementing innovative business models, notably its “ecosystem strategy,” launched in 2024. This approach segments the business into direct consumer sales and a business-to-business (B2B) platform, allowing retailers to access Zalando’s logistics, marketing, and data services. The B2B segment experienced a 14.6% growth, reaching 1.09 billion euros in revenue, while the core consumer sales segment still dominates with 11.28 billion euros in revenue for 2025.

Customer Engagement and Spending

• Increased purchase frequency: Customers spent an average of 62.80 euros per transaction, up from 61 euros in 2024.
• Active user engagement: The active customer base expanded rapidly, bolstered by the recent acquisition and targeted marketing campaigns.

Profitability and Future Outlook

Zalando’s earnings before interest and taxes (EBIT) increased by 15.6% to 591 million euros in 2025. Despite ongoing investments and expansion efforts, the profit margin remained steady at 4.8%. Looking ahead, Zalando projects further growth, with revenue and GMV expected to rise between 12% and 17% in 2026. The company also anticipates an EBIT range of 660 to 740 million euros, reinforcing its optimistic outlook for sustained profitability.

Mid-term Goals and Long-term Vision

• By 2028, revenue is expected to grow between 13% and 18% annually.
• The EBIT margin is projected to increase to between 6% and 8%.

Conclusion

Zalando’s 23% growth in Q4 demonstrates the company’s ability to capitalize on strategic acquisitions, operational innovations, and evolving consumer preferences. The integration of About You has been instrumental in expanding its customer base and revenue streams, positioning Zalando for continued success in the highly competitive online fashion market. As it plans for further expansion and profitability in the coming years, Zalando exemplifies how targeted growth strategies can lead to substantial financial performance and market relevance.

FAQs

1. How did the acquisition of About You influence Zalando’s growth?

The acquisition expanded Zalando’s active customer base significantly and contributed to both increased revenue and market reach, reinforcing its position as a leading online retailer in Europe.

2. What are Zalando’s main revenue segments?

The primary revenue comes from direct consumer sales through its platform, while the B2B segment has grown and now accounts for over 1 billion euros in revenue, offering services to other retailers.

3. What are Zalando’s future growth projections?

The company expects to achieve annual revenue growth between 12% and 17% in 2026, with EBIT rising between 660 and 740 million euros, and aims for mid-term growth rates of 13% to 18% by 2028.

4. How does Zalando plan to improve its profitability?

Through operational efficiencies, expansion of its ecosystem strategy, and increasing customer engagement and spending, Zalando aims to boost profit margins alongside revenue growth.