Company Reports

Zalando is the leading European pure-play e-commerce fashion platform. We believe that through its wide reach (62 million active customers after the acquisition of About You, or over 10% of the addressable population in markets where it is present, and over 7,000 brands represented), it benefits from traces of network, costs, and an intangible asset advantage. Although we don’t think these advantages are currently strong enough to warrant a moat, we think the intangible asset advantage should strengthen over time as more customer traffic data is accumulated and better analytics allow for improved conversion rates and customer loyalty.

Zalando reported sequential slowdown and margin pressure in B2C gross merchandise value, or GMV, and revenue in the second quarter. GMV and revenue outlooks were lowered to the lower half of the previous guidance. Shares dropped 17%.

Zalando is the leading European pure-play e-commerce fashion platform. We believe that through its wide reach (62 million active customers after the acquisition of About You, or over 10% of the addressable population in markets where it is present, and over 7,000 brands represented), it benefits from traces of network, costs, and an intangible asset advantage. Although we don’t think these advantages are currently strong enough to warrant a moat, we think the intangible asset advantage should strengthen over time as more customer traffic data is accumulated and better analytics allow for improved conversion rates and customer loyalty.

Zalando reported 6% pro-forma growth in gross merchandize value and 3.4% in pro-forma revenue in the first quarter, while adjusted EBIT margin improved by 30 basis points year on year despite About You integration.

Zalando is the leading European pure-play e-commerce fashion platform. We believe that through its wide reach (62 million active customers after the acquisition of About You, or over 10% of the addressable population in markets where it is present, and over 7,000 brands represented), it benefits from traces of network, costs, and an intangible asset advantage. Although we don’t think these advantages are currently strong enough to warrant a moat, we think the intangible asset advantage should strengthen over time as more customer traffic data is accumulated and better analytics allow for improved conversion rates and customer loyalty.

Zalando's revenue grew 16.8% in 2025, helped by the About You integration. Adjusted EBIT margin was stable at 4.8%. It forecasts 12%-17% growth in revenue and adjusted EBIT of EUR 660 million-EUR 740 million in 2026 (EUR 591 million in 2025), which the market liked, sending shares over 10% higher.

Zalando is the leading European pure-play e-commerce fashion platform. We believe that through its wide reach (61 million active customers after the acquisition of About You, or over 10% of the addressable population in markets where it is present, and over 7,000 brands represented), it benefits from traces of network, costs, and an intangible asset advantage. Although we don’t think these advantages are currently strong enough to warrant a moat, we think the intangible asset advantage should strengthen over time as more customer traffic data is accumulated and better analytics allow for improved conversion rates and customer loyalty.

Zalando is the leading European pure-play e-commerce fashion platform. We believe that through its wide reach (50 million active customers or over 10% of the addressable population in markets where it is present and over 7,000 brands represented), it benefits from traces of network, cost, and intangible asset advantage. Although we don’t think these advantages are currently strong enough to warrant a moat, we think the intangible asset advantage should strengthen over time as more customer traffic data is accumulated and better analytics allow for improved conversion rates and customer loyalty.

Zalando reported an acceleration in sales trends in the third quarter, as gross merchandise value grew by 6.7% and revenue rose by 7.5% on a pro forma basis (5% and 7.3% growth in the second quarter, respectively). Shares were up more than 6% after the announcement.

Zalando is the leading European pure-play e-commerce fashion platform. We believe that through its wide reach (50 million active customers or over 10% of the addressable population in markets where it is present and over 7,000 brands represented), it benefits from traces of network, cost, and intangible asset advantage. Although we don’t think these advantages are currently strong enough to warrant a moat, we think the intangible asset advantage should strengthen over time as more customer traffic data is accumulated and better analytics allow for improved conversion rates and customer loyalty.

Zalando saw an acceleration in gross merchandise value growth of 6.5% for the first quarter of 2025 and a solid 7.9% increase in revenue, outpacing the FactSet-compiled consensus estimate by 2%. The share price jumped by nearly 5% at the market open on May 6.

We are maintaining our fair value estimate for no-moat Zalando as the company reported 2024 revenue and profits in line with previously announced figures and guided for revenue acceleration in the years to come (in line with our expectations) but with stronger profitability progression. The shares look attractive after their recent price decline.