BERLIN — Zalando SE on May 6 reported first-quarter 2026 revenue of €2.99 billion, up 23.8% year-on-year, as the consolidation of acquired peer About You inflated headline figures and pushed the German online fashion group to an operating loss of €79.7 million. The retailer maintained its full-year 2026 guidance of 12% to 17% revenue growth and adjusted operating profit of €660 million to €740 million, signaling management confidence even as integration costs weigh on near-term profitability.
The results, presented in a virtual call by co-CEO Robert Gentz and CFO Anna Dimitrova, fell short of Bloomberg consensus, which had expected an adjusted operating profit of about €63.8 million. Zalando also announced a share buyback programme of up to €300 million, or 20 million shares, to be completed by July 14, 2026.
Q1 2026 Revenue and GMV at a Glance
Total revenue reached €2.99 billion in the quarter ended March 31, up 23.8% from the year-earlier period, according to the company’s regulatory filing. Gross merchandise volume climbed 21.7% to €4.29 billion. Stripping out About You — consolidated since the third quarter of 2025 — organic revenue growth was 3.4% and organic GMV growth was 6%. The disclosure underscores a sharp gap between reported and underlying performance.
For sector context, Hugo Boss Q1 2026 revenue fell 6%, while Adidas Q1 2026 revenue grew 14%. Italian luxury also reported, with Prada Group Q1 2026 results and Zegna Group Q1 2026 results filed earlier in the season.
About You Acquisition Drives Headline Numbers
The About You deal, which consolidated into Zalando’s accounts in Q3 2025, is the principal driver of Q1 2026 growth. The first quarter marks the first full comparable period including the Hamburg-based platform.
Zalando reiterated a synergy target of €100 million annual run-rate by 2028 — one year ahead of the original timetable. Integration costs include the closure of four European logistics centres, among them an Erfurt facility employing roughly 2,700 workers. The restructuring lands amid wider sector reductions, including Nike’s 1,400 job cuts in 2026. Regulatory headwinds also factor into European logistics planning, after France’s anti-fast fashion law stalls earlier this year.
Profitability Pressure: EBIT Falls to -€79.7 Million
Earnings before interest and taxes came in at -€79.7 million, an EBIT margin of -2.7%, compared with roughly -1% in Q1 2025. Management attributed the wider loss primarily to integration spend tied to About You.
JPMorgan analyst Georgina Johanan had told clients to expect “no surprises” from the quarterly figures, with annual targets unchanged. The Q1 result fell below that bar, but the maintained full-year guidance moderated downside reaction. Margin trajectories across European fashion remain uneven: SMCP Q1 2026 revenue fell 3.2%, while Moncler Group Q1 2026 revenue rises 12%.
Active Customers Reach 62.3 Million
Zalando ended the quarter with 62.3 million active customers, up 18.8%. Orders placed totaled 69.5 million, an 18.7% increase. Average basket value rose to €63.1 from €61.2 a year earlier, while orders per customer slipped marginally to 4.8 from 4.9. The company operates across 29 European markets and lists more than 7,000 brands.
Full-Year 2026 Guidance Maintained
Zalando reaffirmed 2026 group revenue and GMV growth guidance of 12% to 17%, with adjusted EBIT projected at €660 million to €740 million. The targets compare with a 2025 baseline of €12.3 billion in revenue, €17.6 billion in GMV and €591 million in adjusted EBIT, according to the company’s Zalando full-year 2025 results.
“Our 2025 results prove our ability to execute: we promised profitable growth and we delivered at the high end of our guidance. We are bringing that same unwavering discipline to 2026.” — Anna Dimitrova, CFO, Zalando
The guidance lands as European luxury groups recalibrate longer-term plans, including Kering’s ReconKering growth strategy, while US department-store consolidation continues, with Saks Global eyes bankruptcy exit financing in the same period.
AI Innovations and SCAYLE B2B Strategy
Zalando said its AI-powered discovery feed reached more than 9 million weekly users in the quarter, repositioning the platform toward daily engagement. AI-generated product images enabled 70% more content output at lower cost, the company said, citing efficiency gains documented in Zalando’s retail technology strategy.
The B2B unit SCAYLE, which surpassed €1 billion in revenue in 2025 with 14.6% year-on-year growth, now powers Levi’s global direct-to-consumer platform, after SCAYLE powers Levi’s global e-commerce platform went live last year. The B2B revenue milestone tracks alongside other European brand thresholds, including Suitsupply hits $1 billion revenue.
Co-CEO Robert Gentz said: “We are very satisfied with the progress we’re making in strategically scaling AI innovations and integrating About You.” Bernstein analyst William Woods told clients that AI is set to drive “evolution rather than revolution” in European apparel retail. Leadership turnover continues to reshape the broader sector, with Lululemon names new CEO amid retail reshuffling among the most-watched moves of the year.
Image: Courtesy of Zalando SE
