Zalando maintains growth in second quarter and refines forecast

Berlin-based online fashion retailer Zalando SE continued its growth trajectory in the second quarter of the 2026 financial year. The company reported a significant increase in sales and a rise in operating profit on Tuesday. Management has adopted a more cautious outlook for the remainder of the year, refining its forecasts accordingly.

Group sales amounted to 3.4 billion euros (3.91 billion dollars) in the period from April to June, representing an increase of 20.8 percent compared to the same quarter last year. This growth was largely attributable to the acquisition of e-commerce company About You, completed last summer. On a pro-forma basis, revenue rose by 1.1 percent. Gross Merchandise Volume (GMV) grew by 20.7 percent to approximately 4.9 billion euros.

Due to a lower gross margin, adjusted earnings before interest and taxes (EBIT) increased by only 10.4 percent to 204.8 million euros. Reported net profit decreased by 24 percent to 73.8 million euros.

Negative special effects impact earnings

For the first half of the year, Zalando generated sales of 6.4 billion euros, an increase of 22.2 percent compared to the same period last year. On a pro-forma basis, sales rose by 2.2 percent. According to the company, this development was supported by “strong sales growth in the business-to-business and retail media business, despite weaker demand, particularly in the business-to-consumer sneaker segment”. GMV grew by 21.0 percent to almost 9.2 billion euros; on a pro-forma basis, it increased by 5.0 percent.

Reported EBIT, which stood at 166.6 million euros in the first half of the previous year, fell to 31.4 million euros due to high one-off charges. The group recorded restructuring costs amounting to 138.9 million euros. According to a statement, these costs resulted from the “closure of our logistics centre in Erfurt as part of the redesign of our logistics network” and from other measures “to increase structural efficiency, particularly in our headquarters in Berlin as well as in our studios and outlets”.

Adjusted for special effects, EBIT increased by 16.1 percent to 269.6 million euros. The bottom line was a reported net loss of 13.8 million euros, compared to a net profit of 106.5 million euros in the same period last year.

Management cuts sales forecast

In light of recent developments, management has become more cautious regarding the full year. It now only expects GMV and sales growth “in the lower half” of the previous forecast range of 12 to 17 percent. The annual forecast for adjusted EBIT, which was previously between 660 and 740 million euros, has been refined to between 680 and 720 million euros.

The company is “even more confident of reaching the midpoint of the adjusted EBIT range,” according to a statement. This is due to “further synergy effects; expected benefits from the restructuring of the logistics network in the second half of the year; ongoing efficiency initiatives; and strong growth in the high-margin partner, software and retail media business”.

Chief financial officer (CFO) Anna Dimitrova sees Zalando as remaining on the right course. “Our resilient profitability results from the quality and mix of our revenues. This is largely due to growth in our high-margin partner business and retail media, our business-to-business scaling, and strict, AI-supported cost management,” she explained in a statement. “Our focus remains unchanged: We are implementing our strategy, investing in the massive opportunities that lie ahead and will deliver a strong, high-quality financial performance in 2026.”