Otto Group Doubles Profit in 2025, Driven by Cost Savings and Platform Growth
Hamburg, May 28, 2026 – The Hamburg-based Otto Group announced a near doubling of its profit in 2025, reaching 312 million Euros after interest and taxes. This significant financial improvement was primarily attributed to stringent cost-saving measures across the conglomerate and the robust growth of its flagship online platform, Otto.de.
Despite this impressive profit increase, the company experienced a more than seven percent decline in overall revenue. This reduction was largely influenced by the sale of its subsidiary, About You, to competitor Zalando.
Strategic Focus on Efficiency and Digital Expansion
Petra Scharner-Wolff, a member of the Executive Board, highlighted the dual strategy that led to the positive financial outcome. “In addition to cost savings, the growth of our internet platform, Otto.de, was a decisive factor,” she stated. The Otto.de platform has demonstrated remarkable performance, growing by more than seven percent and attracting approximately 13 million active customers.
Looking ahead, the Otto Group plans to invest approximately 350 million Euros in technology and artificial intelligence (AI) to sustain its growth trajectory. These investments include enhancing features such as an AI assistant on Otto.de, which interactively assists customers in finding suitable products, thereby improving the overall shopping experience.
Impact of the About You Sale and Future Investments
The decision to sell About You to Zalando, which was agreed upon on December 11, 2024, played a crucial role in the revenue figures. While this transaction impacted the overall turnover, the strategic divestment appears to have contributed to the group’s enhanced profitability by allowing a greater focus on core operations and efficiency.
The Otto Group, which began as a small shoe retailer in Hamburg on August 17, 1949, has evolved into one of the world’s largest mail-order companies, predominantly operating in the online sector. This latest financial report underscores its successful transition and adaptation to the digital marketplace.
Broader Economic Context and Outlook
The company’s improved profitability also comes in a period where other economic factors are at play. For instance, the report briefly mentions an increase in personnel reductions, which may have contributed to the cost-saving efforts. This indicates a broader strategic realignment aimed at optimizing operational efficiency.
The Hamburg Journal on NDR Fernsehen covered this topic on May 28, 2026, at 7:30 PM, emphasizing the significance of these developments for the retail sector and the local economy in Hamburg.
The Otto Group’s continued investment in cutting-edge technology and AI, coupled with its focus on platform growth and cost management, positions it for sustained success in the highly competitive e-commerce landscape.
Source: https://www.ndr.de/nachrichten/hamburg/hamburger-otto-group-gewinn-im-vergangenen-jahr-verdoppelt,otto-366.html
