Zalando posts higher quarterly growth, as AI efficiency boosts operations
Quarterly Performance and AI-Driven Operational Improvements
By Ozan Ergenay
May 6 (Reuters) - European online fashion retailer Zalando on Wednesday reported quarterly growth above last year's level, benefiting from artificial intelligence investments that are making its business more efficient.
Financial Results
The company said its gross merchandise volume (GMV), a key revenue metric measuring the value of all goods sold, rose 21.7% to 4.3 billion euros ($5.03 billion) in the first quarter, compared to 3.5 billion euros a year earlier.
Shares in Zalando, which have fallen 17.9% since the start of the year with Tuesday's close, were seen up 4.1% in pre-market trading.
AI Innovations and Customer Experience
Zalando Assistant and Personalization
Zalando said its app called "Zalando Assistant", a chat-based AI tool that acts like a fashion stylist, supported beauty advices and allowed customers to receive personalized product suggestions in conversations.
AI-Generated Content and Efficiency
It added that AI-generated images were also helping it bring new partner items online faster and improve quality, allowing it to publish about 85% more content.
Strategic Initiatives and Expansion
Scaling AI and Integrating About You
"Our strong first quarter demonstrates the strength of our strategy. We are very satisfied with the progress we’re making in strategically scaling AI innovations and integrating ABOUT YOU,” Co-CEO Robert Gentz said in a statement.
Logistics Network and Competitive Landscape
Customer Offerings and Partnerships
Zalando is investing heavily in refining its offer to customers and strengthening its European logistics network, which it has also opened up to partners, as it seeks to drive growth amid faltering consumer spend and competition from fast-fashion retailers with cheaper offerings such as Shein.
Acquisition of About You
It concluded its acquisition of About You last year, in a deal valuing its smaller rival at 1.13 billion euros.
Outlook and Guidance
The company confirmed its full-year guidance for 2026.
($1 = 0.8525 euros)
(Reporting by Ozan Ergenay in Gdansk, editing by Matt Scuffham)
