By Linda Pasquini and Ozan Ergenay
(Reuters) -German online fashion marketplace Zalando adjusted its 2025 guidance on Tuesday to include newly acquired About You.
The Berlin-based company said it now expected gross merchandise volume (GMV) to come in a range of 17.2 billion euros and 17.6 billion euros ($19.91-20.38 billion) including About You, which represents a 12-15% increase compared to the previous year figure for the Zalando group.
Its shares were indicated up 5.5% in premarket trade.
Assuming About You had been part of the group in the prior-year period, Zalando said it expected GMV and revenue growth of between 4% and 7% on a pro-forma basis.
It had previously expected both GMV and revenue to grow between 4% to 9% this year compared with 2024.
Zalando is investing heavily in its European logistics network, which it has also opened up to partners as it seeks to drive growth amid faltering consumer spending and competition from fast-fashion retailers such as Chinese rival Shein.
The About You acquisition was completed in early July, valuing Zalando’s smaller rival at 1.13 billion euros.
It forecast adjusted earnings before interest and taxes (EBIT) for the combined group to reach a range of 550 million to 600 million euros, helped by Zalando’s strong performance in the first half of the year.
The EBIT guidance hike implies a roughly 3% rise at mid-point for the core business, analysts at J.P. Morgan wrote in a note to clients, as they expect a slight hit from About You losses.
Zalando’s previous forecast, excluding About You, was for an adjusted EBIT between 530 million euros and 590 million euros.
The company’s second-quarter gross merchandise volume was 4.06 billion euros, up from 3.86 billion euros a year earlier.
($1 = 0.8637 euros)
(Reporting by Linda Pasquini, Ozan Ergenay and Tristan Veyet in Gdansk; Editing by David Goodman and Matt Scuffham)
