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Zalando SE
(OTC:ZLNDY)
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Rating:63Neutral
Price Target:
$15.50
▲(14.64% Upside)
Action:Reiterated
Date:08/07/26
The score is driven primarily by solid financial stability and strong free cash flow generation alongside manageable leverage, supported by a generally constructive earnings update (synergy progress and H2 improvement narrative). The rating is held back by weak near-term technical momentum and a high P/E valuation multiple with no dividend yield support, plus guidance refined to the lower end of the prior range and elevated adjustments.
Positive Factors
B2B growth and margin expansion
B2B is becoming a faster-growing and more profitable activity, improving Zalando’s revenue mix. Sustained adoption of SCAYLE and related services could support recurring platform income and reduce reliance on lower-margin retail sales.
Negative Factors
Thin and declining net profitability
Low net profitability leaves limited protection against fulfillment, marketing, returns, or pricing pressure. The recent margin decline indicates that revenue growth is not yet translating reliably into earnings, constraining durable returns on capital.
Read all positive and negative factors
Positive Factors
Negative Factors
B2B growth and margin expansion
B2B is becoming a faster-growing and more profitable activity, improving Zalando’s revenue mix. Sustained adoption of SCAYLE and related services could support recurring platform income and reduce reliance on lower-margin retail sales.
Read all positive factors
Zalando SE (ZLNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.40B
Dividend YieldN/A
Average Volume (3M)6.33K
Price to Earnings (P/E)58.8
Beta (1Y)0.87
Revenue Growth32.36%
EPS Growth-61.73%
CountryUS
Employees17,778
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.19
Shares Outstanding500,500,430
10 Day Avg. Volume6,272
30 Day Avg. Volume6,326
Financial Highlights & Ratios
PEG Ratio-1.79
Price to Book (P/B)2.32
Price to Sales (P/S)0.55
P/FCF Ratio6.62
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.85
Revenue Forecast (FY)$15.98B
Zalando SE Business Overview & Revenue Model
Company Description
Zalando SE operates an online platform for fashion and lifestyle products in Germany and internationally. The company operates through Business-to-Business and Business-to-Consumer segments. It engages in the development, sourcing, marketing, reta...
How the Company Makes Money
Zalando primarily makes money through two main revenue models: (1) its direct-to-consumer retail business and (2) its partner and platform services for brands and retailers. In its retail model, Zalando purchases inventory from brands/wholesalers ...
Zalando SE Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presented a mix of substantive strategic and operational progress (AI rollouts, B2B acceleration, Partner Business growth, strong cash generation and delivered synergies) alongside near-term headwinds (weaker sneaker demand, refined top-line guidance, temporary fulfillment and strike-related costs, and higher non-cash adjustments). Management emphasized confidence in H2 recovery, margin improvement from logistics reshaping, and continued synergy capture, suggesting that most negatives are temporary while several structural, higher-margin growth drivers are gaining traction.Positive Updates
Strong H1 Top-Line and Profitability (Reported)
H1 reported GMV grew 21% and group revenue rose 22.2% year-on-year. Adjusted EBIT increased 16.1% to EUR 270 million (H1), demonstrating profitable growth despite softer demand.
Negative Updates
Softer Demand — Sneakers Weakness
Broad-based softness in the sneaker category impacted demand; sneaker GMV represents low double-digits of total GMV and this category underperformance contributed to top-line disappointment in H1.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong H1 Top-Line and Profitability (Reported)
H1 reported GMV grew 21% and group revenue rose 22.2% year-on-year. Adjusted EBIT increased 16.1% to EUR 270 million (H1), demonstrating profitable growth despite softer demand.
Read all positive updates
Company Guidance
Zalando refined its 2026 guidance to GMV and revenue growth in the lower half of the original 12–17% range and narrowed adjusted EBIT to EUR 680–720m (with increased confidence in hitting the midpoint), after H1 reported GMV +21% and revenue +22.2% (pro‑forma H1 GMV +5%; Q2 pro‑forma GMV +4.4% to EUR 4.9bn; Q2 pro‑forma revenue +1.1%) and H1 adjusted EBIT of EUR 270m (+16.1%); Q2 adjusted EBIT was EUR 205m (+10%), the group has delivered >EUR 20m of ABOUT YOU synergies in H1 (full‑year target EUR 40m), Q2 EBIT adjustments were EUR 93.7m and full‑year adjustments are now expected at ~EUR 380m, cash stood at ~EUR 1.4bn with negative working capital of EUR 494m, operating cash flow EUR 473m, CapEx EUR 55m and free cash flow ~EUR 418m — management expects H2 acceleration (Q3 mid‑single‑digit GMV growth) driven by logistics reshaping, operational efficiencies, further synergies and disciplined inventory management (targeting lower year‑end inventories YoY).Zalando SE Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
72
Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.58B | 11.86B | 10.57B | 10.14B | 10.34B | 10.35B |
| Gross Profit | 5.42B | 4.43B | 4.30B | 3.68B | 4.06B | 4.33B |
| EBITDA | 993.70M | 780.72M | 811.30M | 572.50M | 395.30M | 660.20M |
| Net Income | 93.60M | 206.61M | 251.10M | 83.00M | 16.80M | 234.50M |
Balance Sheet | ||||||
| Total Assets | 8.80B | 9.69B | 7.98B | 8.11B | 7.63B | 6.90B |
| Cash, Cash Equivalents and Short-Term Investments | 1.40B | 1.88B | 2.69B | 2.62B | 2.04B | 2.29B |
| Total Debt | 1.37B | 1.44B | 1.73B | 1.85B | 1.72B | 1.57B |
| Total Liabilities | 6.23B | 6.86B | 5.32B | 5.73B | 5.43B | 4.68B |
| Stockholders Equity | 2.56B | 2.82B | 2.67B | 2.37B | 2.20B | 2.22B |
Cash Flow | ||||||
| Free Cash Flow | 848.42M | 987.72M | 447.30M | 686.30M | 108.30M | 283.30M |
| Operating Cash Flow | 993.91M | 1.08B | 654.10M | 949.50M | 459.90M | 616.20M |
| Investing Cash Flow | -737.60M | -1.04B | -269.80M | -320.70M | -476.20M | -335.90M |
| Financing Cash Flow | -1.08B | -726.55M | -325.60M | -123.60M | -245.90M | -639.80M |
Zalando SE Technical Analysis
Negative
13.52
Price Trends
14.57
Negative
13.89
Negative
13.61
Negative
Market Momentum
-0.40
Positive
33.71
Neutral
2.69
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZLNDY, the sentiment is Negative. The current price of 13.52 is above the 20-day moving average (MA) of 13.42, below the 50-day MA of 14.57, and below the 200-day MA of 13.61, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 33.71 is Neutral, neither overbought nor oversold. The STOCH value of 2.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZLNDY.
Zalando SE Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.92B | 3.82 | 24.62% | 5.13% | 2.38% | 64.31% | |
80 Outperform | $1.46B | 20.30 | 14.05% | ― | 10.80% | 59.70% | |
73 Outperform | $2.73T | 19.72 | 30.50% | ― | 15.77% | 88.63% | |
72 Outperform | $48.50B | 21.87 | 48.28% | 1.13% | 15.18% | 7.28% | |
63 Neutral | $6.40B | 58.78 | 3.47% | ― | 32.36% | -61.73% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $27.16B | -33.81 | -18.84% | ― | 9.92% | -309.73% |
* Consumer Cyclical Sector Average
ZLNDY
Zalando SE
12.55
-2.65
-17.44%
AMZN
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248.42
14.37
6.14%
EBAY
eBay
108.03
20.30
23.14%
VIPS
Vipshop
12.09
-5.55
-31.47%
RVLV
Revolve Group
20.71
-3.12
-13.09%
CPNG
Coupang
14.68
-18.63
-55.93%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.