The online retailer Zalando is presenting figures for the first quarter this Wednesday (May 6th).
This is what the company expects:
Zalando has set itself the goal of increasing sales and profits by 2026 and is also relying on artificial intelligence (AI). In the current year, management is targeting growth in gross merchandise volume (GMV) and revenue by 12 to 17 percent. Adjusted earnings before interest and taxes (EBIT) are expected to increase to between 660 and 740 million euros. Last year, Zalando recorded sales of 12.3 billion euros. The gross merchandise volume was 17.6 billion euros. Adjusted operational earnings amounted to 591 million euros.
Zalando also recently confirmed its medium-term goals for 2028. The group continues to aim for an average annual growth rate (CAGR) of 8 to 13 percent for gross merchandise volume and sales as well as an operating margin (adjusted EBIT margin) of 6 to 8 percent.
Due to the good business development, Zalando has launched a share buyback program. Up to 20 million shares are to be bought back for up to 300 million euros by July 14th at the latest. The shares are to be withdrawn.
Zalando made progress in integrating the acquired online fashion retailer About You, whose takeover was completed last summer. Synergies of 100 million euros per year should now be achieved as early as 2028 – one year earlier than planned.
At the beginning of January, Zalando announced the closure of its logistics center in Erfurt with 2,700 employees. It is one of four logistics centers in Europe to be closed as part of the About You takeover. The closure in Erfurt was criticized by Thuringian state politicians.
This is what analysts expect:
Analyst Georgina Johanan from the US bank JPMorgan does not expect any surprises in the online fashion retailer’s upcoming quarterly figures. The annual targets are likely to remain unchanged.
With regard to AI, William Woods from the US analysis firm Bernstein assumes that it will bring about an evolution rather than a revolution in European retail. The product categories are crucial. Multi-brand retailers like Zalando are likely to feel this more clearly in the clothing market.
Analysts recorded by Bloomberg expect sales of a good three billion euros for the first quarter. The adjusted operating result is likely to have improved to around 63.8 million euros. In the previous year, revenues of 2.4 billion and an adjusted operating result of 46.7 million were recorded.
For 2026, industry experts expect an average increase in sales to around 14 billion euros. The adjusted operating result is forecast at 699 million.