Zalando growing strongly past the 10bn€ mark

The German fashion ecommerce giant was one of the biggest winners of the pandemic. As the offline fashion retailers struggled, Zalando grew rapidly. In 2020 the company reported 23% growth in revenues and for 2021 company accelerated that growth to 29,7%.

The growth has been driven by both Zalando’s core market of German speaking Europe (DACH) as well as the Rest of Europe segment. Since 2018, the Rest of Europe segment has been bigger than DACH. In Q4/2021 Rest of Europe was 27% bigger than DACH.

Despite DACH lagging in size and growth, it is the profit driver for Zalando. For the last seven quarters DACH has been Adjusted EBIT positive reporting 8-10% AEBIT figures during 2021.

DACH has enabled Zalando to become rather profitable.

Since the start of 2019 Zalando has reported only four quarters of negative EBIT. During 2021 the company reported over 400 M€ in EBIT. Who said online fashion could not be profitable?