Zalando SE
XMUN:ZAL
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Zalando SE
XMUN:ZAL
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Zalando SE
Zalando SE is a European online retailer focused on fashion and lifestyle. It sells clothing, shoes, accessories, and beauty items through its website and app, mainly to individual shoppers across Europe. Customers use Zalando as a place to browse, compare, order, and return products from many brands in one place. The company makes money in two main ways. In its retail business, it buys products and resells them to consumers. It also runs a marketplace and partner program where brands and retailers sell through Zalando while Zalando earns commissions, fulfillment fees, and service fees for logistics, payment handling, and marketing support. What makes Zalando different is that it is not just a store, but also a fashion infrastructure partner. It combines a consumer-facing shopping platform with warehouse, delivery, and return services that help brands reach online shoppers without building their own e-commerce operations. That gives Zalando a role between the brand, the seller, and the customer.
Zalando SE is a European online retailer focused on fashion and lifestyle. It sells clothing, shoes, accessories, and beauty items through its website and app, mainly to individual shoppers across Europe. Customers use Zalando as a place to browse, compare, order, and return products from many brands in one place.
The company makes money in two main ways. In its retail business, it buys products and resells them to consumers. It also runs a marketplace and partner program where brands and retailers sell through Zalando while Zalando earns commissions, fulfillment fees, and service fees for logistics, payment handling, and marketing support.
What makes Zalando different is that it is not just a store, but also a fashion infrastructure partner. It combines a consumer-facing shopping platform with warehouse, delivery, and return services that help brands reach online shoppers without building their own e-commerce operations. That gives Zalando a role between the brand, the seller, and the customer.
Strong quarter: Zalando said Q1 was a strong start to 2026, with reported GMV up nearly 22%, revenue up nearly 24%, and adjusted EBIT up 39% to EUR 65 million.
Guidance held: Management reiterated full-year 2026 guidance despite geopolitics and a still-cautious consumer backdrop, saying demand has held up so far.
AI traction: The company highlighted faster progress in AI across shopping, logistics, and partner onboarding, including 10 million customers using its AI assistant last quarter.
B2B momentum: B2B was a standout, with revenue up nearly 24% and adjusted EBIT rising to EUR 26 million, helped by scale and software growth.
Inventory cleanup: Zalando said it made good progress clearing extra inventory, which helped margins in Q1 but should make Q2 gross margin slightly lower year-on-year.
Cost reset: Q1 included EUR 144.5 million of adjustments, and management expects about EUR 300 million for the full year, mostly tied to logistics and restructuring.
Trading tone: Management said current trading remains in line with expectations, with no measurable impact yet from the Middle East conflict and no sign of a major shift versus the cautious consumer seen recently.
