Zalando Stock: Strong Surge Following Optimistic Growth Forecast

Zalando shares recorded significant gains in Thursday's XETRA trading, with the stock rising by 0.3% to €34.56 in morning trading after opening at €35.50. The upward momentum continued throughout the day, reaching a peak of €35.69, while pre-market trading on Tradegate saw even stronger growth of 1.8% to €35.09. This positive development directly correlates with the online fashion retailer's optimistic outlook for the current fiscal year. Following a successful 2024, Zalando projects accelerated growth for 2025, with revenue increases between 4% and 9%. The stock has made remarkable progress from its 52-week low of €18.43 recorded in March 2024, though it still shows potential for growth, with the current 52-week high at €40.08 recorded in February 2025.

Impressive Financial Performance Drives Investor Confidence

The company's latest financial results underscore its positive trajectory, with earnings per share reaching €0.17 in the quarter ending September 30, 2024-a significant improvement from the €0.03 loss reported in the same period last year. Revenue increased by 4.99% to €2.39 billion compared to €2.27 billion in the previous year. For the full 2024 fiscal year, Zalando achieved remarkable results despite challenging economic conditions, with total revenue rising 4.2% to approximately €10.6 billion and gross merchandise volume growing 4.5% to €15.3 billion. The adjusted EBIT surged by 46% to €511 million, substantially exceeding the projected range of €440-480 million. The company's active customer base also reached an all-time high of 51.8 million, representing a 4.5% increase year-over-year.