mwb Research reaffirmed its Buy rating and €39.00 price target on Zalando (ETR: ZAL) following a solid first-quarter performance, implying upside of 87.5% from the stock’s €20.80 closing price on Tuesday.
In a note on Wednesday, analyst Alexander Zienkowicz said the German fashion platform delivered results broadly in line with expectations, with gross merchandise value rising 21.7% year-on-year to €4.3 billion, revenue up 23.8% to €3.0 billion, and adjusted EBIT improving 38.7% to €64.8 million.
Reported net income was weighed down by €96.8 million in restructuring costs, including the closure of the Erfurt site, while free cash flow came in at negative €512.9 million due to seasonal working capital effects.
WELCOME BONUS - Free Share Bundle When You Invest £50!
Open a UK Investment Account: Shares, ISAs, Managed Portfolio
Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.
IG
View Offers
Empfohlener Broker
Multi Asset Platform
Zienkowicz noted that headline growth was heavily supported by the consolidation of ABOUT YOU, with pro-forma GMV growth a more moderate 6.0% and revenue growth of 3.4%.
B2B was singled out as the “clear highlight,” with revenue growing 23.6% and the segment margin expanding to 8.6%, supported by ZEOS scale and SCAYLE software revenues. B2C margins, however, were diluted by the ABOUT YOU integration.
Management confirmed full-year 2026 guidance for 12%-17% GMV and revenue growth and adjusted EBIT of €660-740 million.
On the macro backdrop, Zienkowicz noted that while “the European consumer remains cautious and price-sensitive,” no measurable impact from the Middle East conflict has been incurred, though guidance excludes any prolonged conflict impact.
Key watchpoints flagged by mwb Research include cash conversion, ABOUT YOU margin progression, and macro and geopolitical risks.
Searching for the Perfect Broker?
Discover our top-recommended brokers for trading or investing in financial markets. Dive in and test their capabilities with complimentary demo accounts today!
- IG Top-tier regulation – Read our Review
- eToro Wide range of instruments available to trade – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
