Zalando SE (ZLNDY) AI Stock Analysis

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Zalando SE

(Other OTC:ZLNDY)

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Rating:62Neutral

Price Target:$16.50▲(5.12% Upside)

Action:downgraded

Date:11/05/26

The score is primarily supported by improving operating performance and a moderately improving balance sheet, alongside bullish technical trend signals. It is held back by weak/volatile bottom-line profitability and declining free-cash-flow growth, and further pressured by a very high P/E valuation. Earnings-call commentary was generally constructive with reaffirmed guidance, but noted margin pressure in B2C and meaningful restructuring/integration cash impacts.

Positive Factors

Revenue and operating growthStrong revenue growth combined with improving adjusted EBIT indicates better operating leverage and continued demand across Zalando’s platform. If sustained, this scale can support reinvestment, improve fixed-cost absorption, and strengthen earnings power over the next several quarters.

Negative Factors

Weak bottom-line conversionThe sharp deterioration in net profitability means strong revenue and operating gains are not yet converting consistently into shareholder earnings. This weakens earnings quality, limits confidence in near-term returns, and leaves results more exposed to costs, taxes, or other below-operating-line items.

Zalando SE (ZLNDY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $7.70B
Dividend Yield: ―
Average Volume (3M): 29.99K
Price to Earnings (P/E): 120.5
Beta (1Y): 0.79
Revenue Growth: 23.95%
EPS Growth: -72.06%
Country: US
Employees: 17,778
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Specialty Retail

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, retail,...

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 and...

Zalando SE Earnings Call Summary

Earnings Call Date:Nov 03, 2026(Q3-2026)|% Change Since:3.88%|Next Earnings Date:Mar 11, 2027

Earnings Call SentimentPositive

The call was predominantly positive. Zalando reported improving Q3 growth, higher group adjusted EBIT, strong B2B revenue and margin expansion, customer and partner-business growth, progress on ABOUT YOU synergies, and reaffirmed full-year guidance. These strengths were partly offset by lower B2C profitability and group gross margin, higher Q3 marketing spend, restructuring and integration cash outflows, still-small agentic-commerce traffic, and continued price sensitivity in European consumer demand.

Positive Updates

Q3 Growth and Adjusted EBIT Improvement

Reported GMV grew 7.5% year-on-year and group revenue increased 5.1%. On a pro forma basis, GMV growth improved to 6.1% and revenue growth to 3.3%. Adjusted EBIT reached EUR 107 million, up 11% year-on-year, and adjusted EBIT margin increased to 3.4%.

Negative Updates

B2C Revenue Growth Lagged GMV Growth

Pro forma B2C GMV increased 6.1% year-on-year, while B2C revenue increased only 0.9% to EUR 2.8 billion. Management said the shift toward a more scalable, platform-led model weighs on revenue growth in the short term.

Company Guidance

For full year 2026, Zalando confirmed reported GMV and revenue growth in the lower half of the 12% to 17% range, adjusted EBIT in the range of EUR 680 million to EUR 720 million, CapEx between EUR 240 million to EUR 300 million and a negative net working capital position, while remaining committed to deliver the midpoint of its adjusted EBIT guidance range. The company expects margin expansion predominantly due to improvements in its OpEx lines as well as continued synergy delivery, a broadly flat gross margin for the full year, around EUR 380 million of total adjustments, with cash impact around 40%, and further improvements in fulfillment costs throughout 2027 and 2028; B2B margin is expected to be around 9% to 10% going forward and the company will take this momentum as well in 2027.

Zalando SE Financial Statement Overview

Summary

Strong trailing revenue growth and improved operating profitability support the score, and leverage appears manageable with an improving debt-to-equity trend. Offsetting these positives, net profitability and ROE weakened sharply in TTM and free cash flow declined versus the prior period, raising questions about earnings durability and bottom-line conversion.

Income Statement

56Neutral

Balance Sheet

63Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.72B	11.86B	10.57B	10.14B	10.34B	10.35B
Gross Profit	5.44B	4.43B	4.30B	3.68B	4.06B	4.33B
EBITDA	1.04B	780.72M	811.30M	572.50M	411.90M	660.20M
Net Income	60.91M	206.61M	251.10M	83.00M	16.80M	234.50M
Balance Sheet
Total Assets	9.15B	9.69B	7.98B	8.11B	7.63B	6.90B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.88B	2.69B	2.62B	2.04B	2.29B
Total Debt	1.36B	1.44B	1.73B	1.85B	1.72B	1.57B
Total Liabilities	6.54B	6.86B	5.32B	5.73B	5.43B	4.68B
Stockholders Equity	2.61B	2.82B	2.67B	2.37B	2.20B	2.22B
Cash Flow
Free Cash Flow	713.93M	987.72M	447.30M	686.30M	108.30M	283.30M
Operating Cash Flow	832.35M	1.08B	654.10M	949.50M	459.90M	616.20M
Investing Cash Flow	-278.97M	-1.04B	-269.80M	-320.70M	-476.20M	-335.90M
Financing Cash Flow	-692.08M	-726.55M	-325.60M	-123.60M	-245.90M	-639.80M

Zalando SE Technical Analysis

Technical Analysis SentimentPositive

Last Price15.70

Price Trends

50DMA13.77Positive

100DMA14.29Positive

200DMA13.51Positive

Market Momentum

MACD0.54Negative

RSI60.48Neutral

STOCH79.79Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZLNDY, the sentiment is Positive. The current price of 15.70 is above the 20-day moving average (MA) of 15.05, above the 50-day MA of 13.77, and above the 200-day MA of 13.51, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 60.48 is Neutral, neither overbought nor oversold. The STOCH value of 79.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZLNDY.

Zalando SE Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

ZLNDY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIPS	81Outperform	$6.31B	4.17	24.62%	4.68%	2.38%	64.31%
AMZN	80Outperform	$2.88T	21.26	26.71%	―	15.35%	73.92%
EBAY	71Outperform	$53.08B	25.89	46.11%	1.01%	15.33%	-0.34%
ZLNDY	62Neutral	$7.71B	120.48	2.32%	―	23.95%	-72.06%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RVLV	59Neutral	$1.34B	20.50	12.37%	―	14.69%	18.66%
CPNG	50Neutral	$27.23B	-19.88	-37.92%	―	7.41%	-450.60%

* Consumer Cyclical Sector Average

Performance Comparison

ZLNDY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ZLNDY	Zalando SE Unsponsored ADR	15.70	2.84	22.10%
AMZN	Amazon.Com, Inc.	266.66	33.79	14.51%
EBAY	Ebay Inc	120.92	39.79	49.05%
VIPS	Vipshop Holdings	13.26	-5.58	-29.63%
RVLV	Revolve Group	18.86	-1.78	-8.62%
CPNG	Coupang, Inc. Class A	15.19	-12.62	-45.38%

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.

Date of analysis: Nov 05, 2026

Zalando SE AI Stock Analysis