Dear audience, this year, for the first time, Robert Gentz and David Schröder will report together on the past financial year 2024 and the strategy update. I hand over to Robert Gentz and David Schröder. Take back, is that a compass in your nature? Or are you tricky 'cause I've been there? Maybe I don't need to learn my lesson twice. Need someone to hold me close, deeper than I ever know. Whose love feels like a rodeo. Knows just how to take control. When I'm vulnerable, he's straight talking to myself. Conversation overload got me feeling vertigo. Are you somebody who can go there? 'Cause I don't wanna have to show ya. If that ain't you, then let me know ya. 'Cause training season's over. Training season's over.
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Thank you very much, Mariella. Dear shareholders, good morning.
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The best way to predict the future is to shape it. With these words by Peter Drucker, I would like to welcome you to this year's AGM. Thank you for joining us. We look forward to talking to you today about our business and our successes in 2024, and to talk about our ambitions and plans for the future. The dialogue with you, our shareholders, is very important to us, and we appreciate your continued interest in our journey. Our annual general meeting is being held virtually today because we want every vote to count, regardless of location. Your participation and your trust mean a lot to us. With this in mind, we are particularly pleased to look back with you on an eventful and successful year 2024. Firstly, we've presented our ecosystem strategy.
Not only have we successfully started implementing it, but we've also returned to growth, to the growth path. In doing so, we've achieved, and in some cases exceeded, our financial targets, and our growth initiatives have contributed to this. Secondly, we've mastered a challenging market environment. One of our strengths since Zalando's foundation in 2008 has been to analyze constantly changing customer needs and market conditions and to align our business accordingly. Thirdly, we have continued to invest strategically and vigorously in our platform and offerings, whether it is the development of new offers for customers and partners, the introduction of new technologies, or the merger with About You. We are actively and emphatically shaping the future and thus laying the foundation for long-term value growth. Since March of last year, we have had an updated strategy. It motivates us, and it gives us a clear direction.
Our goal is clear. We want to build the leading e-commerce ecosystem for fashion and lifestyle in Europe, and we are determined to achieve this goal. How do we do that? We are evolving from a single platform to a network e-commerce ecosystem. In this way, we are creating completely new opportunities for strong, sustainable, and profitable growth. That means in the B2C sector, i.e., in the end customer business, that we are focusing on quality as a differentiating feature. We're expanding our lifestyle range and making the shopping experience more inspiring and entertaining, with an extended range that not only covers fashion, but also the many lifestyle areas that are so important to many people, and with new offers that not only inspire, but also entertain. In the B2B area, i.e., in corporate customer business, we offer our brand partners and retailers comprehensive e-commerce solutions.
Specifically, we're opening up our logistics software and service infrastructure to strengthen the e-commerce business of brands and retailers with the ZEOS operating system. This means that we benefit from transactions regardless of whether they take place on the Zalando platform or outside of it. This transformation to the ecosystem is the key to our next chapter: strong growth and a significant increase in margins by 2028. The positive development of our key financial figures and our share price in 2024 confirms our course.
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What did we achieve in 2024? Let's take a look at the figures. As always, in comparison with the previous year, with 51.8 million active customers, we've reached a new high. This means an increase of more than two million people who placed their trust in us. The GMV grew to EUR 15.3 billion, an increase of 4.5%. The turnover rose to EUR 10.6 billion, which is an increase of 4.2%. We achieved an operating result of EUR 511 million. That is a margin of 4.8%. We exceeded our forecast by more than EUR 30 million. This brings us an important step closer to our goal, an operating margin of 6-8% in 2028.
These figures show that we're on the right path forward, and they wouldn't have been possible without the hard work of our more than 15,000 colleagues who give their best for our customers and partners every day. We'd like to express our sincere thanks for this. Executive Board and Supervisory Board propose that Zalando SE's net retained profits for the 2024 financial year be carried forward in full to new account. We're investing in the future. We therefore do not plan to distribute a dividend. The earnings will be reinvested in the business. In order to increase the value of the company for you, our shareholders, in the long term, our goal is to continue to grow strongly and profitably. What does that mean for the share price? The stock market looks through the windscreen, not in the rearview mirror, and Zalando is doing well. Our shares developed positively.
With an increase in value of 51% in 2024, Zalando outperformed both other companies in our sector and the German Stock Market Index, DAX, which rose by 18%. The decisive factor is not what was yesterday, though. It is rather what is possible tomorrow. We have a clear growth agenda. Your support and perspective as shareholders is of great importance to us. We listen, take ideas on board, and shape the future together. In addition to our economic success, another issue remains central: our responsibility for the environment and for a sustainable future, because we know that sustainability is not just a trend, it is a necessity. That is why sustainability is an important part of our strategy. Our goal is to reduce our own carbon footprint and to make the fashion and lifestyle industry as a whole more responsible, more sustainable, and more future-proof.
To achieve this, we set ourselves ambitious climate targets. We want our own operations and our own private labels to be climate neutral by 2040. We want to achieve climate neutrality along our entire supply chain by 2050. The first important steps have already been taken. Since 2017, we've reduced emissions in our own operations by 82%. We've also been able to reduce the emissions intensity of our private labels by 48% since 2018. These figures show change is possible, and we're only at the beginning. We're determined to continue along this path together with our partners, our customers, and everyone who believes in a sustainable future and anyone who wants to actively change our industry and promote sustainability.
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The determination to drive change characterizes not only our commitment to a more sustainable future, but also our day-to-day business with our customers. Let's take a look at our B2C business first.
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Now, what are our plans in the B2C sector, the end customer business? Dear shareholders, we have three clear priorities. Firstly, we focus on quality. This is important to us in everything we do, from the products we offer to the digital customer experience and order processing, and it sets us apart from many others. Secondly, we are expanding our range of fashion and lifestyle products from sports to family and beauty. There are still many new things for us to discover and offer and to respond even better to customer needs. Thirdly, we want to do more than just sell. We want to inspire and entertain our customers and offer them an outstanding experience so that they enjoy shopping with us and that they come back. Let's move on to point one: our quality, our quality along the customer experience. Let me give you four examples.
First, we've specifically upgraded our range. Customers can now shop renowned brands such as Versace, Marc Jacobs, and ON Running. Since this year, we've had an exclusive European retail partnership with the renowned designer Diane von Fürstenberg. Secondly, a customized digital experience. More than 300,000 customers are already actively using our innovative body measurement function to find the perfect size and fit. State-of-the-art AI technology helps us here. Thirdly, more sustainable and inclusive products. We are continuously expanding our range in order to reach even more customers. Fourthly, a localized and personalized shopping experience. Customers, for example, now benefit even more from innovative and convenient payment options such as Klarna, and we have also made our own purchase on account offer even better. Our customers appreciate this quality and reward us with the fact that they keep coming back.
I would now like to introduce you to a specific initiative that once again emphasizes our progress in customer loyalty.
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We have improved and restructured our Zalando Plus loyalty program. It now rewards all our customers for their loyalty, both for their purchases and for their commitment to Zalando. And how does it work? Quite easy. You collect points for your purchases and your activities, and with these points, you can achieve three different status levels: first Shine, second Star, and then the highest status, Superstar. Each level offers additional and attractive benefits, but see for yourself.
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The program is currently available in 13 markets. 15% of our customers have already signed up for the program just a few months after its launch. And this is great news for two reasons.
First, we are already strengthening customer loyalty and binding our customers even more closely to our platform. Second, 85% of our customers have not yet used the program, so this means that the potential for future growth is enormous. In the long term, we want to reach the majority of our customers with Zalando Plus and significantly increase both the average number of orders and sales with Plus customers. Initial data shows promising progress in this direction. Now we come to point two of our B2C strategy, the expansion of our lifestyle and fashion offering. Our customers tell us that they want products that cover many facets of their individual lifestyles, and fulfilling these needs opens up enormous opportunities for us. It is about more than just shopping. It is about creating real added value, improving the customer experience, and becoming part of their everyday lives.
We are achieving this by continuously expanding our range with a combination of a broader range, advisory functions, personalized inspiration, and maximum convenience. I would like to give you two examples. The first example is beauty. We have learned a lot since the launch in 2018, especially through feedback from our customers and brand partners. We have used these insights to further develop our beauty range in a targeted manner and with many new, specially tailored shopping experiences. It pays off. In 2024, our beauty business achieved double-digit growth, and we further strengthened our range, including with strong brands such as Dyson, Armani, and ghd. I am convinced that we will continue our growth trajectory this year. At the same time, this is also an important driver for our advertising platform, Zalando Marketing Services, as beauty brands use these services particularly often to advertise their products.
The second example is sports. Sports is not just a growth market for our customers. Sports is an expression of their lifestyle and a way of connecting with others. Again, our strategy is paying off here. In 2024, we recorded steady customer growth in the sports division and double-digit growth in cross-merchandise volume. In 2025, we are now going one step further. We are significantly expanding our sports experience. We invest specifically in the areas of running, outdoor fitness, and football to open up new ways for people to enjoy nature, to help them rediscover fitness for themselves, and to celebrate the best football moments together. Sports connects people, and that's exactly what we want to be part of as a partner that inspires, supports, and grows together with its customers. See for yourselves.
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Let's move on to the third and final point, Inspiration and Entertainment. Our goal is clear. We want to make the shopping experience even more inspiring, entertaining, and personalized, because the stronger the emotional connection with our customers, the more relevant we become for them in their everyday lives. We are continuously developing our formats in this dynamic area. We test in a targeted manner, optimize iteratively, and measure exactly what works. With Stories on Zalando, we combine inspiration and entertainment directly with the shopping experience. Since the launch in August 2023, we have already published over 500 stories in collaboration with more than 700 brands and over 7,000 products. Our customers receive insights from fashion experts, enthusiastic fashionistas, and style icons. We present products, give insider tips, and tell inspiring stories from the world of fashion.
With stories , we are actively shaping how shopping will work in the future: inspiring, interactive, and emotional. Take a look at how we are rethinking the combination of inspiration and shopping and making it a reality today. As you can see, we are working hard to sustainably strengthen our growth and further expand our market position in European fashion and lifestyle e-commerce. We are implementing our B2C strategy step- by- step with clear initiatives, innovative strengths, and consistent consumer orientation. Now back to David to have a closer look at the B2B area.
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Next to B2B, the corporate customer business is the second cornerstone of our strategy and our way to becoming an e-commerce ecosystem. Why is this so important? Quite simply, because we are not just expanding our own business, but also helping our partners to fully utilize the potential in European e-commerce.
Together, we create more for our partners, for customers, and for Zalando. As a result, we will be able to serve an even larger part of the European fashion and lifestyle market and further accelerate our growth. As a reminder, the complexity of online retail in Europe, with its many different markets and local differences, poses major challenges for many brands. Our answer to this is ZEOS, our e-commerce operating system that supports brands and retailers in mastering these challenges. What does that mean in concrete terms? It works like a modular system for digital retail. Brands and retailers can choose exactly the modules they need for their business, from logistics and software to additional services. Last year, we laid a strong foundation for logistics in particular. Today, we are in an excellent position to further expand our ZEOS offering.
Apart from that, our partners can use 13 different sales channels, amongst them nine leading marketplaces covering 85% of the European market. We have TikTok Shop on board. In the future, ZEOS will be the preferred logistics partner for fashion and lifestyle retailers on TikTok Shop in Germany, France, and Italy. The successful launch of our first partner, TB International, on TikTok Shop in Germany was an important milestone for our expansion in the area of social commerce. To give brands and retailers even more control over their shipping processes, we have introduced a centralized control cockpit called ZEOS One. Our key business processes can already be conveniently controlled from this central cockpit today, and we will continue to expand it. How does ZEOS work in practice, and what are the benefits for our partners? Let me give you a concrete example.
Our B2B business has developed enormously in recent years. It's based on strong partnerships and joint success. I'm thinking of our early talks with Pepe Jeans in 2019. For those of you who are not yet familiar with Pepe Jeans, the well-known European fashion brand specializes in high-quality denim products, and it's represented in over 60 countries worldwide. How has our collaboration developed? In the beginning, Pepe Jeans sold its products via Zalando and shipped them itself from a logistics center in Spain to customers throughout Europe. However, this was complicated and not easily scalable.
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It has therefore been decided by Pepe Jeans to give Zalando the task to take care of processing the majority of these orders. Today, with our logistics, we even serve Pepe's own online shop, pepejeans.com, without logistics. The result is impressive.
Since 2019, Pepe Jeans has sold nine times as many items as at the beginning. This success story shows that with ZEOS, we create real added value for brands and retailers, and that is why we're now systematically expanding this business. A good example of this is our partnership with Next, which began this year. Next is a leading U.K. retailer with a total turnover of GBP 5.8 billion in 2024. Next's international business is growing very strongly. Together with Next, we're making the ZEOS offering even better, also for our other partners who use it. What does that mean in concrete terms? We're introducing new practical functions, for example, enhanced inventory management to maintain a better overview of stock levels at different locations and continuously optimize these. We are expanding into 12 other European countries so that Next can count on us wherever they are active in Europe.
With Next, we have not only gained a strong partner, we have also shown that ZEOS is an indispensable solution for large international brands to drive their digital business across all sales channels. To summarize, our B2B business is a central component of our strategy. With ZEOS, our e-commerce operating system, we help brands and retailers to simplify, scale, and grow their businesses. We are only at the beginning. The opportunities that lie ahead are enormous, and we are ready to capitalize on them. Let us now take a look ahead, first to our acquisition plans and then to the figures. We have already talked about how we want to build the leading ecosystem for fashion and lifestyle e-commerce. An important step on this path is the launch of the new e-commerce platform on 11th September with Hamburg company ABOUT YOU , announced on 31st December 2024. Why ABOUT YOU ?
Because ABOUT YOU fits perfectly with Zalando's strategy. In the B2C sector, ABOUT YOU enables us to pursue a two-brand strategy. This allows us to fulfill the individual needs of customers and partners even better, with customized and differentiated shopping experiences. In the B2B area, scale will complement the B2B software from ABOUT YOU .
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Together, we're creating an even stronger offering for brands and retailers across Europe. When we talk about the EBITDA, we are aiming for significant synergies of around EUR 100 million per year for the group in the long term. Let me give you a brief update on the current status. We're pleased to report that we've already secured commitments for over 91.5% of ABOUT YOU shares, less treasury shares. The German Financial Supervisory Authority, BaFin, has already authorized us to carry out the takeover. The transaction is therefore about to be finalized.
The approval of the E.U. Antitrust Authorities, which we expect to receive in the summer. That's the last point missing. As soon as the takeover offer has been finalized and the agreements with the main shareholders of ABOUT YOU have become effective, we also intend to acquire the remaining shares. Our aim is to complete the takeover in full. To this end, we plan to pay out the remaining ABOUT YOU shareholders in return for compensation as part of a formal procedure known as squeeze-out. With ABOUT YOU , we're taking a big step forward for our ecosystem, for our customers, and for our partners. With that, let's come to the outlook for 2025. This year, despite a rapidly changing geopolitical and economic environment, we expect an increase in GMV and sales growth of between 4%-9% compared to 2024.
We expect an operating profit. We also speak of adjusted EBITDA of between EUR 530 million and EUR 590 million. The outlook does not take into account the effects of a planned takeover of ABOUT YOU . We have already made a good start into the new year. Our figures for the first quarter of 2025 have shown this, as always, comparing it with the same period of the previous year. GMV rose by 6.5% to EUR 3.5 billion, turnover total EUR 2.4 billion, an increase of 7.9%, supported by strong growth in Zalando Marketing Services and B2B divisions. Adjusted EBITDA rose to EUR 47 million compared to EUR 28 million in the same quarter of the previous year. This corresponds to an adjusted EBITDA margin of 1.9%.
Our financial results motivate us to continue pursuing our vision with full focus, but we also know that we have not yet reached our goal and must continue to work hard to bring our vision to life and inspire customers and partners anew every day. Following this review of the current financial year, we would now like to look further ahead together with you.
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dear shareholders, we are firmly convinced that the future lies in digital commerce. With our platform, our growing customer base, our strong network of partners, and our ecosystem strategy, we have numerous levers at our disposal to continue to grow. What really drives us is our common goal: to make fashion and lifestyle accessible, inspiring, and sustainable for everyone. At Zalando, we experience every day how Europe benefits from diversity and collaboration.
People from over 140 nations work with us to help more than 52 million customers in 25 European markets to freely express their individuality through fashion. They've made Zalando a melting point for innovation and a European success story. We need a new culture of opportunity so that we can continue to write this success story. Europe must remain a place that rewards the courage to innovate. We invest in our home country because we believe in the future viability of Germany and Europe. As the largest economy in the European Union, Germany bears a special responsibility for Europe. We want Germany to play an active role in shaping a strong Europe, a Europe that remains economically strong, technologically advanced, and globally competitive. It is now up to the next federal government to set the course.
Germany must take its responsibility in and for Europe seriously, and we as a company will do our part. After this brief look at our deep roots in Europe, I would like to summarize the most important points of today. Firstly, we are creating the Pan-European ecosystem for fashion and lifestyle e-commerce. We are making significant progress towards this goal. We've successfully achieved and exceeded our financial targets for 2024. Secondly, we can look back on a strong first quarter. We have exciting plans for 2025 to drive our strategy forward. The planned acquisition of ABOUT YOU fits seamlessly into our strategic direction. Thirdly, the opportunities that lie ahead of us are great. With a clear course and the right speed, we want to continue to grow through our own strengths and the acquisition of ABOUT YOU .
This will enable us to create an even stronger business model with attractive financial prospects. Dear shareholders, you can be sure of this. We will continue to actively shape the future of fashion retail. We will act in a customer-oriented, partnership-based, and sustainable manner, and we will consistently implement our strategy to create significant long-term value. We thank you for your many years of loyalty and trust.