E-Commerce Group Otto Doubles Profits Despite Weaker Revenue

Why It Matters

The surge shows Otto can boost margins through digital platforms and ancillary services, signaling resilience in a sluggish European e‑commerce market.

Key Takeaways

• Revenue dropped 7.4% to €13.8 bn ($15.2 bn) after divesting About You.
• EBIT more than doubled to €641 m ($705 m), driving €312 m ($343 m) profit.
• otto.de platform growth offset weaker fashion brand performance.
• Financial‑services unit Eos contributed significantly despite consumer‑protection scrutiny.
• Cost‑saving initiatives helped sustain profitability amid soft consumer confidence.

Pulse Analysis

The Otto Group, one of Germany’s largest e‑commerce conglomerates, closed its fiscal year ending February with revenue of €13.8 billion, roughly $15.2 billion, a 7.4 % decline from the prior year. The shortfall stems largely from the July 2025 sale of its fast‑growing fashion platform About You to rival Zalando and a softer performance at the Bonprix label, both of which felt the drag of waning consumer confidence across Europe’s apparel market.

Despite the top‑line contraction, the company more than doubled its earnings before interest and taxes, climbing from €276 million ($304 million) to €641 million ($705 million). CEO Petra Scharner‑Wolff attributes the upside to three levers: accelerated growth of the otto.de marketplace, robust contributions from the financial‑services subsidiary Eos, and a disciplined cost‑reduction programme that trimmed overhead across logistics and IT. After taxes, Otto posted €312 million ($343 million) in profit, underscoring how ancillary services can offset weakness in core retail segments.

The results send a clear signal to investors that mature European e‑commerce players can still generate margin expansion by leveraging digital platforms and non‑retail revenue streams. However, Eos faces heightened scrutiny from consumer‑protection groups, which could pressure its growth trajectory if regulatory actions intensify. Looking ahead, Otto’s ability to deepen its marketplace offering while navigating a cautious consumer environment will be pivotal for sustaining profitability and competing with pure‑play online rivals such as Zalando and Amazon.