Zalando SE

In Q2, group GMV increased on a pro forma basis by 4.4% to EUR 4.9 billion, while group revenue grew 1.1% pro forma. Adjusted EBIT reached EUR 205 million, up 10% year over year, and the group adjusted EBIT margin was 6%, down 0.5 percentage points from the prior year due to ABOUT YOU dilution. B2C revenue reached EUR 3.1 billion; B2C gross profit margin was 43.2%; B2C adjusted EBIT was EUR 164.1 million versus EUR 173.7 million a year ago, with margin at 5.3% versus 6.7%. B2B revenue was EUR 335 million, up 27.6% reported and 21.1% pro forma; B2B gross margin expanded to 20.6% and B2B adjusted EBIT was EUR 41 million, up from EUR 11 million. For H1, group GMV grew 21% reported and revenue grew 22.2% reported, while adjusted EBIT increased 16.1% to EUR 270 million. Full-year 2026 guidance was tightened to lower-half growth within the prior 12% to 17% GMV and revenue range, and adjusted EBIT was narrowed to EUR 680 million to EUR 720 million. The company also raised expected 2026 total adjustments to around EUR 380 million from around EUR 300 million, mostly due to 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, its technology platform, and scaling AI. He emphasized that AI is already delivering measurable efficiency and growth benefits, and highlighted new launches like SCAYLE Studios, the Zalando Assistant upgrades, and the Home & Living expansion as signs of momentum. His tone was upbeat and confident, especially around the company’s ability to meet full-year targets and build toward midterm goals.

Anna Dimitrova focused on the financial trade-offs behind the quarter: pro forma GMV up 4.4%, revenue up 1.1%, adjusted EBIT at EUR 205 million, and group gross margin stable at 40.9%. She said ABOUT YOU diluted margins, but synergies are already ahead of plan at more than EUR 20 million in H1, supporting confidence in the EUR 40 million full-year target. She also pointed to strong cash generation, with operating cash flow of EUR 473 million, free cash flow of around EUR 418 million, cash and cash equivalents of around EUR 1.4 billion, and EUR 235 million returned to shareholders through buybacks.

Analysts pressed management on weak sneaker demand, whether it could drive more markdowns or excess inventory, and how quickly Zalando can change assortment. Anna said sneaker softness is broad-based, that the category is low double-digit of GMV, and that Zalando is choosing profitable growth over pushing more discounts; she also said the company can adjust in-season budgets and does not expect a near-term sneaker turnaround. Questions also focused on ABOUT YOU synergies, inventory, and B2B phasing; management said synergy delivery is ahead of plan, inventory will be managed carefully and is expected to be down year over year by year-end, and the B2B phasing effect is temporary and below EUR 10 million on a group level.