Finance
Zalando expects annual profit above last year
Published by Global Banking & Finance Review®
Posted on March 12, 2026
3 min readLast updated: March 12, 2026
Quick Summary
Zalando on March 12, 2026, forecasted its full-year adjusted EBIT to reach €660 million–€740 million, up from €591 million in 2025, citing improvements in its stand-alone operations.
Zalando says AI drives productivity and expects higher profit, shares jump
Zalando's AI Strategy and Financial Outlook
By Ozan Ergenay and Helen Reid
March 12 (Reuters) - European online fashion retailer Zalando said on Thursday its use of artificial intelligence was making its business more efficient and productive, as it forecast full-year adjusted operating profit to grow in 2026 and launched an up to 300-million-euro ($346 million) share buyback.
Market Reaction
Zalando shares jumped 7% in early trading as investors welcomed the positive outlook, providing some succour to the stock that had tumbled sharply from peaks in 2021 when the pandemic boosted online shopping.
AI Implementation and Benefits
AI-Generated Content and Virtual Try-On
Zalando said AI-generated product images were saving money and time on ad creation and enabling it to publish 70% more content, while an AI virtual try-on was also helping shoppers pick their correct size, reducing size-related returns - a major headache for online shopping platforms.
Analyst Concerns About AI Risks
Analysts said concerns had been growing over the risk to Zalando from AI, with some worried consumers could use large-language models like ChatGPT to research products and shop online, bypassing the company's platform.
Financial Performance and Forecast
Profit and Revenue Growth
The Berlin-based company, which sells clothes, shoes and accessories from thousands of brands including Nike, Hugo Boss, and Coach, expects adjusted earnings before interest and taxes (EBIT) of 660 million to 740 million euros in 2026, compared with 591 million euros in 2025.
CEO Statement
"We are providing our customers and partners with experiences and services that seemed impossible just a few years ago while making our own operations more efficient," Robert Gentz, co-CEO of Zalando, said in a statement.
Business Expansion and Partnerships
Zalando, whose business-to-business arm sells services to other retailers and brands, also announced its software unit Scayle signed a deal with Levi's to run its worldwide ecommerce, which JP Morgan analysts said investors would welcome given the brand's status and size.
Key Metrics and Share Buyback
The company expects gross merchandise volume growth of 12% to 17% in 2026, after GMV - a key revenue metric measuring the value of all goods sold - grew 14.7% to 17.56 billion euros in 2025.
Zalando's active customer numbers increased to 62 million in 2025 from 51.8 million in 2024, while the average order value was 62.8 euros, up from 61 euros a year earlier.
The company said it would repurchase up to 20 million shares with a total price of up to 300 million euros.
Additional Information
($1 = 0.8661 euros)
(Reporting by Ozan Ergenay and Helen Reid; Editing by Matt Scuffham and Joe Bavier)
Key Takeaways
- •Full‑year 2026 adjusted EBIT guidance of €660 million–€740 million, above €591 million in 2025 (Source: Reuters)
- •2025 adjusted EBIT was €511 million, rising strongly from prior years and marking return to growth (Source: El País, Reuters)
- •Growth supported by About You acquisition, expansion into new markets (e.g., Portugal, Greece, Bulgaria), and B2B ecosystem strategy including ZEOS fulfilment (Sources: Ecommercenews Europe; FinancialReports)
Frequently Asked Questions about Zalando expects annual profit above last year
1What is Zalando's profit outlook for 2026?
Zalando expects its full-year adjusted operating profit in 2026 to be between 660 and 740 million euros.
2What is driving Zalando's profit growth?
Underlying improvements in Zalando's stand-alone business are driving its profit growth.
3What currency exchange rate was reported in the article?
The article notes that $1 equals 0.8666 euros.
4Who reported and edited the Zalando profit news?
Ozan Ergenay and Helen Reid reported the news, with editing by Matt Scuffham.
