As expected, the Berlin online fashion retailer Zalando SE closed the first quarter of the 2026 financial year with a significant increase in sales and increased its operating result. However, negative special effects resulted in a high net loss. Given the latest results released on Wednesday, management stuck to its full-year guidance.
In the period from January to March, group sales amounted to almost 3.0 billion euros. This corresponded to an increase of 23.8 percent compared to the same quarter of the previous year. The takeover of the e-commerce company About You last summer played a large part in the strong growth. According to the group, on a pro forma basis sales increased by 3.4 percent. In addition, “strong sales growth in the B2B and retail media business” was achieved.
The gross merchandise volume (GMV) grew by 21.7 percent to 4.29 billion euros. On a pro forma basis it increased by six percent. The number of active customers increased by 18.8 percent year-on-year to 62.3 million.
Operating profit exceeds market expectations
The group also made progress in terms of operating profit in the first quarter. Earnings before interest and taxes (EBIT) adjusted for special effects rose by 38.7 percent to 64.8 million euros, exceeding analysts’ expectations. The group attributed this not least to synergy effects amounting to ten million euros as a result of the About You takeover. The company is “on track to achieve the synergy target of 40 million euros for the full year 2026,” it said in a statement.
“Our first quarter results reflect the financial discipline we demonstrated last year,” emphasized Chief Financial Officer Anna Dimitrova. “We promised profitable growth and delivered again.”
Special effects push the group into the red
However, the group had to record high one-time charges. Restructuring costs totaled 96.8 million euros, which resulted primarily from the planned closure of the logistics center in Erfurt.
The reported loss before interest and taxes was therefore 79.7 million euros, after a positive EBIT of 21.4 million euros was achieved in the same quarter of the previous year. The bottom line was a net loss of 87.6 million euros. In the first quarter of 2025, Zalando posted a surplus of 9.9 million euros.
Management confirms its annual forecasts
Co-CEO Robert Gentz drew an overall positive conclusion from the past few months. “Our strong first quarter demonstrates the strength of our strategy. We are very pleased with the progress we are making in scaling AI innovations and integrating About You,” he said in a statement. “Our unique data and infrastructure platform that we have built over 17 years – including the most comprehensive fashion-specific data in Europe and the leading European logistics network – is a huge advantage when combined with AI.”
Management stuck to its forecasts for the entire financial year, especially since the company said it had observed “no significant operational or financial effects of the ongoing conflict in the Middle East” in the first quarter. Sales and GMV are expected to continue to increase by twelve to 17 percent compared to 2025. EBIT adjusted for special effects is expected to reach 660 to 740 million euros.
