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AI · E-Commerce · Share Buyback · Zalando
Online fashion retailer Zalando reported robust revenue and operating earnings growth in 2023, exceeding industry expectations, driven by the About You acquisition and early AI integration.
The company announced a significant share buyback program of up to €300 million, which propelled its stock up 11% despite recent declines. Analysts from RBC, Goldman Sachs, and JPMorgan offered predominantly positive commentary, highlighting solid figures, an optimistic outlook, and Zalando's pioneering role in "Agentic Commerce" powered by AI. For 2024, Zalando targets 12-17% GMV and revenue growth, with adjusted EBIT expected to rise to €660-740 million, aligning with analyst consensus.
The company also reaffirmed its ambitious 2028 medium-term goals, aiming for an 8-13% CAGR in GMV and revenue, alongside a 6-8% adjusted EBIT margin. The integration of About You is progressing faster than anticipated, with €100 million in annual synergies now expected by 2028, a year ahead of schedule.
While net earnings saw a slight dip, the strategic focus on AI, M&A synergies, and shareholder returns through the buyback program underscore management's confidence in future growth.
