The Otto Group has made an inspiring comeback, returning to profitability after a challenging financial period. Reflecting on the fiscal year that ended in February, the company described it as an “extremely convincing financial year” and reported a net profit of €165 million. With its revitalized strategy and clear vision, Otto is setting its sights on further growth, particularly driven by the impressive performance of its marketplace.
A significant turnaround from last year’s loss of €426 million was achieved, thanks to a major reorganization that affected nearly 6% of its workforce, including many roles in customer service.
After two consecutive years of declining revenue, the Otto Group managed to keep consolidated revenue steady at just under €15 billion, even achieving slight growth on a comparable basis. Yet the true success lies in its return to the black. By prioritizing profitability and liquidity, Otto has laid the groundwork for sustainable growth.
Petra Scharner-Wolff, the newly appointed CEO, expressed her pride in this milestone:
“Our sharp focus has allowed us not only to maintain our revenue base but to clearly bring the Otto Group back into profitability across all levels. We have faced the challenges of the market head-on and have navigated them successfully.”
Scharner-Wolff shared her optimism for the future, noting the company’s enhanced financial stability and newfound confidence to embrace growth opportunities.
At the heart of Otto’s resurgence is the remarkable performance of its marketplace. The trading volume on Otto.de and its app saw an impressive 9% boost over the last year, surpassing €7 billion—a standout achievement in the German ecommerce landscape. Active customer numbers grew by 4%, reaching 12.2 million. During a press conference, CFO Katy Roewer revealed the company’s ambitious goal: reaching a GMV of €10 billion by 2030.
Despite ongoing challenges in the market, Otto Group is confident it can keep revenues steady this year while continuing to improve profitability. As it prepares to part ways with About You, the company is determined to strengthen its margins further. Scharner-Wolff emphasized that future growth will hinge on the group’s commitment to technological competitiveness, signaling Otto’s readiness to embrace innovation and forge a stronger future.
The journey back to profitability hasn’t been easy, but Otto Group’s story is a testament to the power of resilience, smart leadership, and a relentless focus on progress.
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