German online retail giant Otto has returned to profitability, reporting platform revenue of approximately €7.5 billion for the past fiscal year, driven in part by growth in its Home & Living division.
© Otto Group
CEO Dr. Boris Ewenstein confirmed the company is "back in the black", noting performance exceeded the wider e-commerce market, which grew by around 3%. Otto recorded a 6% revenue increase, supported by gains across both its retail and marketplace operations.
Artificial intelligence is central to the company's strategy, with a focus on enhancing product discovery and delivering "hyper-personalised" shopping experiences. A newly launched AI assistant, built on Google technology, provides voice-led guidance across a catalogue of around 19 million products.
Ewenstein described AI as transformative, stating it is "fundamentally changing customer expectations" and enabling a new era of digital retail.
Looking ahead, Otto aims to reach €10 billion in turnover by 2028 through scaling its retail, marketplace and services divisions. Cost reduction measures are also underway, including plans to cut 460 roles at its Hamburg headquarters and reduce costs by €110 million.
The company continues to invest in technology and private label development, including its Otto Home range, as competition intensifies from global platforms.
Source: www.moebelmarkt.de
