Zalando's performance exceeds expectations, announces €300 million stock buyback plan

Investing.com - Zalando SE (ETR:ZALG) announced its 2025 fiscal year results on Thursday, exceeding analyst expectations, and revealed a €300 million share buyback program, demonstrating confidence in its future profitability.

The European fashion and lifestyle platform reported full-year revenue of €12.3 billion, up 16.8% year-over-year, slightly below the market forecast of €12.4 billion. Adjusted EBIT reached €591 million, surpassing the market expectation of €580 million by 1.9%.

Leading FTSE — Access premium insights and real-time market updates in the UK stock market with InvestingPro

The company’s gross merchandise volume (GMV) grew 14.7% to €17.6 billion, exceeding the market forecast of €17.4 billion by 0.7%. The performance data includes the ABOUT YOU business from July 11, 2025, onward, following its acquisition.

However, net profit was €213 million, below expectations, due to €111 million in special item expenses, including €57 million in acquisition costs and €43 million in restructuring costs.

For the 2026 fiscal year, Zalando’s guidance aligns closely with analyst expectations. The company projects GMV between €19.7 billion and €20.6 billion, with a median about 2% higher than the market forecast of €19.7 billion.

Revenue guidance is between €13.8 billion and €14.4 billion, with a median roughly 1% below the market expectation of €14.2 billion. Adjusted EBIT is expected to reach €660 million to €740 million, with a median about 3% higher than the market forecast of €678 million.

Co-CEO Robert Gentz said, “We are accelerating our strategy, launching significant innovations in both B2C and B2B sectors, and delivering strong performance in 2025. By leveraging artificial intelligence to enhance this foundation, we are providing customers and partners with experiences and services that seemed impossible just a few years ago.”

The company’s B2C active customers reached 62 million, while B2B revenue grew 14.6% to €1.1 billion, with adjusted EBIT more than doubling. Zalando’s software division SCAYLE announced a partnership with Levi’s to support the brand’s global direct-to-consumer business.

The share buyback will account for approximately 5% of the issued shares and will be funded by the company’s strong cash flow. Zalando plans to cancel the repurchased shares.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.