Outlook: Zalando expects growth at start of year

Online retailer Zalando is set to present its figures for the first quarter this Wednesday, May 6.

What the company expects:

Zalando has set its sights on increased revenue and profit for 2026, also leveraging Artificial Intelligence (AI). For the current year, management is targeting growth in Gross Merchandise Volume (GMV) and revenue of 12 to 17 percent. Adjusted earnings before interest and taxes (EBIT) is expected to increase to between 660 and 740 million euros. Last year, Zalando recorded revenue of 12.3 billion euros. The Gross Merchandise Volume was 17.6 billion euros. Adjusted operating profit was 591 million euros.

Zalando also recently confirmed its medium-term targets for 2028. The group continues to aim for a compound annual growth rate (CAGR) of 8 to 13 percent for Gross Merchandise Volume and revenue, and an operating margin (adjusted EBIT margin) of 6 to 8 percent.

Following its strong business performance, Zalando has launched a share buyback programme. By July 14 at the latest, up to 20 million shares will be repurchased for up to 300 million euros. The shares are to be cancelled.

Zalando made progress with the integration of the acquired online fashion retailer About You, whose acquisition was completed last summer. Synergies of 100 million euros per year are now expected to be achieved by 2028, a year earlier than planned.

At the beginning of January, Zalando had announced the closure of its logistics centre in Erfurt, which employs 2,700 people. It is one of four logistics centres in Europe that are set to close following the acquisition of About You. The closure in Erfurt was criticised by Thuringian state politicians.

What analysts expect:

Analyst Georgina Johanan from US bank JPMorgan does not expect any surprises from the online fashion retailer's upcoming quarterly figures. The annual targets are likely to remain unchanged.

With regard to AI, William Woods from US research firm Bernstein assumes that it will bring about an evolution rather than a revolution in European retail. The product categories are crucial. Multi-brand retailers like Zalando are likely to feel this more significantly in the apparel market.

Analysts surveyed by Bloomberg expect revenue of just over three billion euros for the first quarter. The adjusted operating result is expected to have improved to around 63.8 million euros. In the previous year, revenue of 2.4 billion and an adjusted operating result of 46.7 million were recorded.

For 2026, industry experts expect on average a revenue increase to around 14 billion euros. The adjusted operating result is forecast at 699 million.

This article was translated to English using an AI tool.

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