Full-year profit at fashion retailer Zalando rises, but revenue down

Earnings were up significantly in fiscal 2023 at Zalando, an online retailer of shoes, fashion and beauty products, the Berlin-based company reported on Wednesday.

For the full year, Zalando posted earnings before taxes of €152.9 million ($167 million), significantly higher than the €38.8 million recorded in the previous year, primarily due to lower costs.

Earnings before interest and taxes (EBIT) increased more than 100% to €190.9 million from €81 million last year.

Excluding special items, adjusted EBIT rose to €349.9 million from €184.6 million in the previous year.

Net income income increased to €83 million or €0.32 per share from €16.8 million or €0.06 per share a year ago.

Revenue for the year, however, slightly declined to €10.143 billion from €10.345 billion in the previous year.

The company's active customers also declined to 49.6 million from 51.2 million a year ago.

For the fiscal year 2024, Zalando expects adjusted EBIT to be in the range of €380 million-€450 million on revenue growth of 0-5%.