After a tough financial period, the Otto Group is back in the black. The German retail and services group ended its most recent financial year, which closed in February, with a net profit of €165 million. This marks a significant turnaround from the previous year’s loss of €426 million.

The company described the year as “extremely convincing,” and the numbers seem to support that claim. While total revenues stayed steady at just under €15 billion, Otto’s focus shifted firmly toward stabilizing operations and regaining profitability.

This return to profit wasn’t without its challenges. Over the past year, Otto Group underwent a restructuring process that included job cuts across several departments. Nearly 6% of the company’s workforce was affected, including a significant number of roles in customer service. These difficult decisions, according to the company, were necessary to reduce costs and make the business more efficient.

Petra Scharner-Wolff, Otto’s newly appointed CEO, highlighted that the company has built a stronger foundation by prioritizing profitability and liquidity. “Our clear focus has enabled us to succeed not only in keeping revenues stable, but also in bringing the Otto Group clearly into the black at all earnings levels,” she said.

The company sees this financial year as a turning point. According to Scharner-Wolff, Otto has managed to face market challenges head-on and has come out more financially stable. She also shared that this new position of strength gives Otto the confidence to look ahead with optimism.

A major area of growth for the company has been its marketplace. While traditional retail remains part of its business, Otto’s marketplace model — where third-party sellers list their products on Otto’s platform — has played a key role in driving forward its recovery. The company sees this area as a strong contributor to future growth.

At DMSMatrix, we see Otto’s turnaround as a sign of broader trends in the ecommerce and retail space. Companies that adapt, simplify their operations, and build platforms that support other sellers are often better positioned for long-term success.

Otto’s story is a reminder that even in difficult times, strategic focus and tough decisions can help a business recover and find its footing again.