Zalando SE

Reported Q2 figures: group GMV increased 20.7% on a reported basis; pro forma GMV rose 4.4% to EUR 4.9 billion. Group revenue growth was 1.1% pro forma; reported B2B revenue was EUR 335 million, up 27.6%, and B2C revenue was EUR 3.1 billion reported. Adjusted EBIT was EUR 205 million, up 10% year over year; group adjusted EBIT margin was 6.0%, down 0.5 percentage points. Group gross margin was 40.9%; B2C gross profit margin was 43.2%; B2B gross margin was 20.6%. For H1, reported GMV grew 21%, revenue grew 22.2%, and adjusted EBIT was EUR 270 million, up 16.1%. Full-year 2026 guidance was refined to the lower half of the prior 12% to 17% GMV and revenue growth range, with adjusted EBIT narrowed to EUR 680 million to EUR 720 million. Management also raised 2026 total adjustments guidance to around EUR 380 million from around EUR 300 million, citing noncash write-downs tied to accelerated closures.

Robert Gentz framed the quarter as evidence that Zalando is executing its strategy across three pillars: multi-app distribution, a unified technology platform, and scaled AI capabilities. He emphasized that AI is already creating measurable efficiency and growth benefits, citing SCAYLE Studios, the Zalando Assistant, and gains from new lifestyle categories and partnerships. His tone was confident but pragmatic: growth was solid, H1 top-line came in a bit below ambition, and the company now sees stronger H2 performance as the path to its full-year goals.

Anna Dimitrova focused on the mix shift toward Partner Business and B2B, but repeatedly noted that the stronger platform model is tempering revenue in the short term while supporting longer-term monetization. She cited more than EUR 20 million of ABOUT YOU synergies delivered in H1 versus a EUR 40 million full-year target, adjusted EBIT of EUR 205 million in Q2, and a 6.0% group margin that she said was diluted by ABOUT YOU’s lower margin profile. On cash, she highlighted EUR 1.4 billion of cash and cash equivalents, EUR 473 million of operating cash flow, EUR 55 million of CapEx, EUR 235 million returned via buybacks, and around EUR 418 million of free cash flow. She also said working capital remained negative at EUR 494 million and that the company expects H2 benefits from logistics reshaping, efficiencies, synergy delivery, and disciplined inventory buying.

Analysts focused heavily on weak sneaker demand, the risk of markdowns and excess inventory, and whether Zalando can re-accelerate in H2. Management said sneaker softness is broad-based, that the category is a low-double-digit share of GMV, and that they are choosing profitable growth over pushing more volume through discounts. On inventory, Anna said old stock was reduced while new-season intake lifted reported inventories, and she expects inventory to decrease year over year by year-end. Questions on B2B, synergies, and SCAYLE’s U.S. pipeline were answered with comments that B2B should continue growing strongly, synergies are coming from commercial, logistics, and procurement actions, and North America is a key market with a strong U.S. pipeline after Levi’s traction.