Zalando said it will focus on returning to profitability over the next 12-months following a year in which its profits slumped by over 60 per cent to around €184 million.

Co-chief executive of the online fashion retailer Robert Gentz anticipates that the company's profitability push – along with a five per cent cut to its global workforce - will help it to the top end of its three to six per cent margin target by 2025 and result in double-digit margins in the long term.

“Our view on the overall tremendous market opportunity has not changed,” he said. “In the mid-term, we have the clear ambition to return to double digit growth rates for GMV.”

To shore up its fortunes, the retailer also shared in its financial year 2022 report that it intends to continue to address its portfolio of propositions for frequent and relevant engagement with customers to unlock its full growth potential.

Revenues for 2023 will target profitability between €280 million to €350 million.

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