BERLIN (Reuters) – German online fashion retailer Zalando said it aims to capture more than 10% of the € 450 billion ($ 537 billion) European fashion market over the long term after coronavirus freezes supercharged the market. its growth in 2020.
It has set a new target for gross volume of goods (GMV): sales on its own site alone or by partners – to surpass 30 billion euros by 2025, after announcing on Monday that its revenue forecast for 2021 was well above market projections.
Founded in Berlin in 2008, Zalando has grown to be the largest online fashion retailer in Europe, selling clothes, accessories and beauty products in 15 markets.
Its shares, which fell 5% this year on expectations of the lifting of coronavirus restrictions and a decision by Swedish investment firm Kinnevik to distribute its stake, rose 4.4% in initial Frankfurt trading.
Zalando expects GMV to grow 27% -32% between 13.6 billion and 14.1 billion euros in 2021, above analysts’ average expectations of 25% growth.
GMV grew about 50% in the first quarter, marking an “extraordinarily strong start to the year,” said Zalando.
After co-chief executive Rubin Ritter announced plans to leave the company in December, Zalando said founders Robert Gentz and David Schneider would continue to lead.
Following criticism that the top management teams were all men, Zalando said he had appointed Astrid Arndt to a new position as chief people officer on Monday.
He also created a new chief business and product officer role that will be filled by current chief technology officer Jim Freeman.
($ 1 = 0.8387 euros)
Reporting by Emma Thomasson; edited by Riham Alkousaa and Jason Neely