Stocks

Headlines

Zalando Reports First Quarter Profit Amid Revenue Growth

Zalando SE's first quarter shows promising results with a profit shift from loss, revenue up 7.9%, and growth in GMV. The company maintains its fiscal 2025 guidance despite global economic challenges.

Date: 
AI Rating:   8
Zalando SE has reported a significant turnaround with net income of 9.9 million euros this quarter compared to a loss of 8.9 million euros in the previous year. This marks a positive shift which suggests a recovery and could bolster investor confidence in the stock. **Earnings Per Share (EPS)** has also improved, rising to 0.04 euros from a loss of 0.03 euros, reflecting effective cost management and operational improvements. **Revenue Growth** stood at 7.9 percent, growing to 2.42 billion euros from 2.24 billion euros year-over-year, with a notable contribution from Zalando Marketing Services. This increase not only indicates stronger sales but also reflects the company’s ability to capitalize on its marketing strategies in a competitive landscape. Moreover, the **Gross Merchandise Volume (GMV)** has increased by 6.5 percent to 3.5 billion euros, suggesting an enhanced consumer demand for Zalando’s products. Adjusted EBIT surged by 65.2 percent, reaching 46.7 million euros. This increase, along with a margin lift of 0.7 percentage points to 1.9 percent, showcases Zalando's operational efficiency and ability to manage costs effectively, which is commendable in today’s economically volatile environment. Looking ahead, Zalando's guidance for fiscal 2025 indicates continued confidence in sustaining growth, with expectations for GMV and revenue to grow between 4 percent and 9 percent year-over-year, alongside an adjusted EBIT target of 530 million to 590 million euros. Such prognostics can convey stability and potential for future growth, which is attractive to investors. Despite potential headwinds from the fast-changing geopolitical and macro-economic climate, the performance indicators presented in this report are predominantly positive. This strong showing in net income, EPS, revenue, and adjusted EBIT provide a firm foundation for future stock performance expectations. Further, with active customers increasing by 5.9 percent to 52.4 million, consumer engagement remains strong which is vital for ongoing revenue generation.
Stocks:  ZLNDY