Zalando (ZAL) investor relations material

Executive summary

• Group GMV grew 21.7% year-over-year to €4.3 billion, and revenue rose 23.8% to €3 billion, driven by ABOUT YOU integration, strong partner business, and AI initiatives.

• Adjusted EBIT increased by 38.7% to €65 million, with margin improving to 2.2%; reported EBIT was negative due to €97 million in restructuring costs.

• Active customers reached 62.3 million, up 18.8% year-over-year, with average spend per customer up 2.9% to €305.

• ABOUT YOU and Lounge by Zalando delivered double-digit growth, and loyalty program membership exceeded 18.5 million.

• AI-powered automation and customer service enhancements drove operational efficiency and customer engagement.

Financial highlights

• Group GMV reached €4.3 billion (+21.7% yoy), revenue €3 billion (+23.8% yoy), with B2C revenue at €2.7 billion and B2B at €297 million.

• Adjusted EBIT margin improved to 2.2% (group), 2.5% (Zalando standalone), 1.4% (B2C), and 8.6% (B2B); B2B adjusted EBIT up fourfold to €26 million.

• Gross margin stable at 39.1% year-over-year; B2C gross margin at 41.5%, B2B at 18.2%.

• Net income was -€87.6 million, compared to €9.9 million in Q1 2025, mainly due to restructuring costs.

• Cash and cash equivalents stood at €1.26 billion at quarter-end, with negative free cash flow of -€512.9 million.

Outlook and guidance

• Full-year 2026 guidance confirmed: GMV and revenue growth of 12–17%, adjusted EBIT €660–740 million, capex €240–300 million, and negative net working capital.

• Q2 pro forma GMV growth expected in the mid-single-digit range; gross margin in Q2 anticipated slightly below prior year, with improvement expected in H2.

• Management remains confident despite volatile geopolitical and macroeconomic conditions; guidance excludes potential impact from prolonged Middle East conflict.