Zalando Jumps as Online Fashion Retailer Sees Return to Growth 

Zalando packaging from an online delivery is seen discarded in a cardboard box in Galway, Ireland, August 27, 2020. Picture taken August 27, 2020. (Reuters)
Zalando packaging from an online delivery is seen discarded in a cardboard box in Galway, Ireland, August 27, 2020. Picture taken August 27, 2020. (Reuters)
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Zalando Jumps as Online Fashion Retailer Sees Return to Growth 

Zalando packaging from an online delivery is seen discarded in a cardboard box in Galway, Ireland, August 27, 2020. Picture taken August 27, 2020. (Reuters)
Zalando packaging from an online delivery is seen discarded in a cardboard box in Galway, Ireland, August 27, 2020. Picture taken August 27, 2020. (Reuters)

German online fashion retailer Zalando on Wednesday forecast a return to growth this year and said it was opening up its logistics business to more players, raising hopes of a boost to its performance and helping to lift its shares.

The stock jumped as much as 18.5% after the company also said late Tuesday it would buy back up to 100 million euros ($109 million) of shares, starting from March 13.

Zalando said on Wednesday it expected gross merchandise value (GMV) growth, a key metric measuring the value of all goods sold, of between 0% and 5% this year, after a 1.1% decline to 14.6 billion euros in 2023.

It said it was targeting a compound annual growth rate of 5-10% for GMV and revenue through 2028, as it updated strategies for both its fashion/lifestyle business and its infrastructure business (B2B) ahead of a Capital Markets Day on Wednesday.

In B2B, Zalando is opening up its logistics network, software and services to help the e-commerce transactions of brands and retailers regardless whether they take place on its platform.

By doing so, "Zalando seems to be reckoning that the historical growth story relying on even-increasing online fashion penetration is now close to the glass ceiling," said Bryan, Garnier & Co analyst Clement Genelot.

"In other words, the growth potential has been reduced. Hence the shift towards a logistician business to address the over-capacity issue in its existing fulfilment network."

Zalando also expects revenue growth of 0% to 5% this year, after a 1.9% drop to 10.1 billion euros in 2023.

"The wider range reflects the continued uncertainty we see in the market," finance chief Sandra Dembeck told reporters.

Zalando, a multi-brand platform that sells clothes, shoes, and accessories, is facing weakening demand after a growth boom during the pandemic, as consumers grappling with inflation and high interest rates cut spending and turn to cheaper options offered by fast fashion rivals like China-based Shein.

Its shares were up 15% to 22 euros at 0823 GMT.

The company expects adjusted earnings before interest and tax of 380 million to 450 million euros this year, up from 350 million in 2023.



Notre Dame Cathedral’s Reopening Spectacle Capped a Stellar Year for Luxury House LVMH

CEO of LVMH Bernard Arnault, left, Antoine Arnault, CEO of Berluti , center right, and members of the Arnault family talk in Notre Dame Cathedral before France's iconic cathedral is formally reopening its doors for the first time since a devastating fire nearly destroyed the 861-year-old landmark in 2019, Saturday Dec.7, 2024 in Paris. (Ludovic Marin/Pool via AP, File)
CEO of LVMH Bernard Arnault, left, Antoine Arnault, CEO of Berluti , center right, and members of the Arnault family talk in Notre Dame Cathedral before France's iconic cathedral is formally reopening its doors for the first time since a devastating fire nearly destroyed the 861-year-old landmark in 2019, Saturday Dec.7, 2024 in Paris. (Ludovic Marin/Pool via AP, File)
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Notre Dame Cathedral’s Reopening Spectacle Capped a Stellar Year for Luxury House LVMH

CEO of LVMH Bernard Arnault, left, Antoine Arnault, CEO of Berluti , center right, and members of the Arnault family talk in Notre Dame Cathedral before France's iconic cathedral is formally reopening its doors for the first time since a devastating fire nearly destroyed the 861-year-old landmark in 2019, Saturday Dec.7, 2024 in Paris. (Ludovic Marin/Pool via AP, File)
CEO of LVMH Bernard Arnault, left, Antoine Arnault, CEO of Berluti , center right, and members of the Arnault family talk in Notre Dame Cathedral before France's iconic cathedral is formally reopening its doors for the first time since a devastating fire nearly destroyed the 861-year-old landmark in 2019, Saturday Dec.7, 2024 in Paris. (Ludovic Marin/Pool via AP, File)

The reopening of Notre Dame was a solemn celebration of cultural and spiritual renewal. Yet for some, the historic cathedral's revival also felt like a meticulously choreographed branding event from LVMH and other luxury conglomerates.

Bernard Arnault, the lowkey billionaire behind luxury powerhouse LVMH and a key Notre Dame donor who regularly tops the list of the world’s richest men, was at the center of the celebration. He was surrounded by his family, the French president, the archbishop and clergy, and the unmistakable symbols of his luxury empire’s influence, including its brands Louis Vuitton and Dior.

First lady Brigitte Macron held a conspicuous Lady Dior handbag. Louis Vuitton artistic director Pharrell Williams performed kitted out in Louis Vuitton. South African soprano Pretty Yende also contributed with a rendition of “Amazing Grace” while wearing a Dior gown adorned with 110 carats of diamonds.

Welcome to the “inauguration of the LVMH arena,” commented television journalist Yann Barthès about the cathedral ceremony this week.

LVMH has enjoyed unprecedented visibility in France in 2024, especially as a high-profile sponsor of the Paris 2024 Olympics.

Some questioned the taste of such brand prominence occurring in a sacred space like the beloved Gothic monument, while noting LVMH's crucial contribution to the reconstruction.

“You can’t blame monsieur Arnault, a businessman, to do business. But people are now asking if it was an appropriate venue for a display like that,” said fashion PR consultant Theo Fontaine.

“It’s been a great PR year for LVMH—that’s for sure,” Fontaine added. “The Olympics and now Notre Dame. The whole world has been watching.”

Not far behind Arnault sat representatives of Kering, adding another layer to the ongoing rivalry between France’s two largest luxury conglomerates.

Kering CEO François-Henri Pinault attended alongside his wife, actress Salma Hayek, who wore a tailored Gucci coat. Gucci is Kering-owned.

The event, marking the culmination of an 840-million-euro restoration effort following a devastating 2019 fire, brought together global dignitaries and cultural icons.

The Notre Dame restoration united France’s corporate giants. Arnault’s 200-million-euro donation was the largest, followed by 100-million-euro contributions from Pinault and the Bettencourt-Meyers family of L’Oréal. Over 250 companies and 2,000 craftspeople contributed to the five-year restoration effort, which reconstructed the spire, repaired vaulted ceilings and restored stained-glass windows.

As the bells of Notre Dame rang out across Paris, the cathedral’s rebirth stood as a testament to collective effort — but also for some as a symbol of how France’s seats of power and its prized luxury industry are inextricably intertwined.

French President Emmanuel Macron and Brigitte Macron welcomed heads of state, including President-elect Donald Trump, Britain’s Prince William and Elon Musk, to a ceremony steeped in tradition — and high fashion.

Arnault attended with his family, including Dior chair and CEO Delphine Arnault, LVMH image and environment director Antoine Arnault, Moët Hennessy deputy CEO Alexandre Arnault, LVMH Watches CEO Frédéric Arnault, and Louis Vuitton product and development director for watches Jean Arnault. Antoine Arnault’s wife, model Natalia Vodianova, was also in attendance.

“I am proud of the outpouring of generosity from all over the world, to which the LVMH Group and my family wanted to contribute from the very beginning, which has enabled the restoration of this jewel of our heritage,” Antoine Arnault said in a statement posted to LinkedIn.

“This extraordinary project highlighted the excellence of French know-how and the talent of nearly 2,000 architects, workers and craftsmen of all trades,” he added.

Yet, public reaction was mixed

Papuna Biliseishvili, 24, who watched the ceremony in Paris, quipped, “If the devil wears Prada, the cathedral wears Louis Vuitton and Dior.”

Cari Lefebvre, 27, said “this is the most PR the Catholic Church has seen in centuries.”

Marie-Claire Dubois, a 45-year-old Catholic worshiper from Paris, expressed her disapproval. “This is a sacred place. It is beautiful that these companies contributed, but the branding should have remained outside.”

While the grandeur of the reopening sparked debate, Arnault’s donation and LVMH’s contributions to the cathedral restoration—including 36 300-year-old oak trees for the spire—have been widely praised.

LVMH’s influence at the Paris 2024 Olympics further cemented its stellar year. The company crafted custom display cases for 5,000 medals and the Olympic torch, showcasing its artistry and precision. Berluti, another LVMH brand, designed costumes for the opening ceremony, while an Olympic-themed Vogue World fashion show, supported by the group, drew international attention during Paris Couture Week.

Tensions between Arnault and Pinault, the driving forces behind LVMH and Kering respectively, were on full display with their brands’ prominent appearances at the cathedral. This rivalry dates back decades to a bitter bidding war over Gucci in the late 1990s, which Pinault’s Kering ultimately won. Since then, their competition has extended beyond fashion into the realms of art, philanthropy and global influence.

In Notre Dame, French luxury was also championed by the French Catholic church — and was on display even in the stitch of the liturgical vestments. French fashion designer Jean-Charles de Castelbajac was called on by the church to design the cathedral’s 2,000 garments. The unorthodox designs were fun, modern — and perhaps shockingly minimalist. They ensured that even the clergy’s robes reflected high-fashion artistry, further underscoring the intersection of faith and fashion at the event.