Otto Group: E-commerce revenues down

Due to the ongoing difficult economic environment, the Otto Group recorded a decline in global e-commerce revenue of around 9 percent to just under 10.8 billion euros in the financial year 2023/24. Despite this decline, the company plans to improve its operating profitability by continuing to invest in logistics, IT and customer-centric solutions in the field of artificial intelligence.

"In the current financial year, the focus has been and will continue to be on securing earnings. In this respect, a decline in e-commerce sales was to be expected. In addition, the Christmas season was not as strong as expected, both for us and for the market as a whole. Nevertheless, our management of the Group is successful. In the current financial year 2023/24, we will see an improvement in our operating profitability compared to the previous year. The Otto Group is storm-tested and will emerge stronger from this crisis," emphasises Sebastian Klauke, Member of the Otto Group Executive Board responsible for E-Commerce, Technology, Business Intelligence and Corporate Ventures.

According to the company, the weak consumer climate and low propensity to buy, particularly in Germany, led to a decline in the average shopping basket size and a significant drop in revenues in some of the Otto Group's business models. Nevertheless, the company improved its operating profitability compared to the previous year and gained market share, especially in the German market.

The platform transformation at Otto is showing positive developments, with partner revenues on the Otto marketplace increasing significantly compared to the previous year. However, the Otto Group recorded an overall decline in revenues in the Fashion and Home and Living segments.

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