(Reuters) – German online fashion retailer Zalando said on Wednesday it expects to return to growth in 2024, after reporting full-year decline in sales, in line with its own forecast range.
It forecast gross merchandise value, a key revenue metric measuring the value of all goods sold, to grow between 0% and 5% in the current year, compared to a decline of 1.1% to 14.6 billion euros ($16.0 billion) in 2023.
Zalando, a multi-brand platform that sells clothes, shoes, and accessories, is facing weakening demand after a growth boom during the COVID-19 pandemic, as consumers grappling with inflation and high interest rates cut unnecessary spending and turn to cheaper options offered by low-priced fast fashion competitors like China-based Shein.
The company said it targets a compound annual growth rate of 5-10% for both GMV and revenue through 2028. It aims to reach a margin on adjusted EBIT of 6%-8% by the same year.
($1 = 0.9153 euros)
(Reporting by Linda Pasquini and Chiara Holzhaeuser; editing by Bartosz Dabrowski)
