Zalando has announced ambitious plans to capture 10 per cent of all European fashion sales by 2025 as it reveals runaway sales figures over its first quarter.
The German online fashion giant said yesterday that it expects gross merchandise volumes (GMV) for 2021 to come dramatically above current market expectations, rising between 27 and 32 per cent to between €13.6 billion (£11.7 billion) and €14.1 billion (£12.1 billion).
It cited an “extraordinarily strong start to the year” in which GMV has already risen by 50 per cent, tracking at double the growth analysts expect for the full year.
This year, Zalando says it expects adjusted EBIT to come in between €350 million (£301 million) and €425 million (£366.2 million), up from the €420.8 million (£362.6 million) reported last year, significantly above expectations of €361 million (£311 million).
Net profits also reportedly doubled last year to €226 million (£194.8 million), encouraging the retailer to target ambitious growth plans over the next few years.
Zalando now says it wants to account for 10 per cent of the entire European fashion market by 2025, seeing GMV triple to €30 billion (£25.8 billion).
While Zalando gave no specific reason for its recent spike in figures, it said the decline in the number of order returns during lockdown helped profitability.