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Zalando: net profit to increase fivefold in 2023

( - Zalando reports that its GMV business volume (merchandise sales, other revenues and marketplace business volume) fell by 1.
1% between 2022 and 2023, to E14.6 bn, suggesting group sales of E10.1bn, down 1.9% on 2022.

Meanwhile, adjusted EBIT is forecast at E350m in 2023, almost double the previous year's figure (E184m), with the adjusted EBIT margin rising from 1.8% to 3.5%.

Finally, Zalando posted net profit of E83m in 2023, a figure that almost quintupled in the space of twelve months (net profit was E16.8m in 2022).

The group aims to return to strong growth and further expand our margins, as reflected in our new medium-term forecasts, management said.

Zalando is targeting a compound annual growth rate of 5%-10% for both gross merchandise volume (GMV) and sales over the next five years.

In the long term, Zalando aims to cover the equivalent of 15% of the European fashion market; this represents E450bn.

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