Education
About Us
Working with TipRanks
Follow Us
Zalando SE (ZLNDY)
OTHER OTC:ZLNDY
Top Page
Zalando SE
(OTC:ZLNDY)
73Outperform
Zalando SE (ZLNDY) vs. S&P 500 (SPY)
Market Cap
$9.07B
Dividend YieldN/A
Average Volume (3M)569.00
Price to Earnings (P/E)33.5
Beta (1Y)1.65
Revenue Growth4.18%
EPS Growth201.10%
CountryUS
Employees15,309
SectorConsumer Cyclical
Sector Strength51
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.52
Shares Outstanding528,237,100
10 Day Avg. Volume0
30 Day Avg. Volume569
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)N/A
Price to Sales (P/S)0.91
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Zalando SE Business Overview & Revenue Model
Company DescriptionZalando SE operates an online platform for fashion and lifestyle products. It provides clothing, footwear, accessories, and beauty products with free delivery and returns. The company also sells its products through its Zalando Lounge; and brick-and-mortar outlet stores in Berlin, Frankfurt, Cologne, Leipzig, Hamburg, Hanover, Münster, Stuttgart, Mannheim, and Ulm. It serves customers in 23 countries, including Austria, Belgium, Croatia, Czechia, Denmark, Estonia, Finland, France, Germany, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Slovakia, Slovenia, Spain, Sweden, Switzerland, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.
How the Company Makes MoneyZalando SE generates revenue primarily through the sale of fashion and lifestyle products on its digital platform. The company's business model is based on a combination of direct retail sales and a platform model where third-party brands and retailers can sell their products directly to customers through the Zalando marketplace. This dual approach allows Zalando to earn revenue from product sales as well as commission fees charged to partners using its platform. Additionally, Zalando offers value-added services such as marketing solutions and logistics support to its partners, further contributing to its income. Significant partnerships with a wide range of fashion brands and retailers enhance Zalando's product offerings and appeal to a broad customer base, driving sales and revenue growth.
Zalando SE Financial Statement Overview
Summary
Zalando SE showcases solid financial health with consistent revenue growth and a manageable debt-to-equity ratio. Challenges include operational pressures affecting EBIT margins despite a strong gross profit margin and improving net profit margins. Cash flow reflects operational efficiency but highlights the need for improved free cash generation.Income Statement
Zalando SE has shown steady revenue growth over the years, with a positive revenue growth rate of 4.24% from 2023 to 2024. Gross profit margin has remained strong at 40.69% in 2024, reflecting effective cost management. However, the EBIT margin declined to zero, indicating increased operational challenges. Net profit margin improved to 2.37% in 2024, showcasing better bottom-line management, though still modest. Overall, the income statement reflects solid top-line growth but indicates potential operational pressures.78
Positive
Balance Sheet
The company maintains a healthy balance sheet with an improving equity base, as evidenced by an increase in stockholders' equity to €2,665 million in 2024. The debt-to-equity ratio is at a manageable 0.65, indicating moderate leverage. The equity ratio remains strong at 33.39%, suggesting a stable financial structure. The balance sheet highlights Zalando's prudent financial management, balancing growth with financial stability.82
Very Positive
Cash Flow
Zalando's cash flow statements indicate a decrease in operating cash flow in 2024 to €654 million, reflecting potential operational cash generation challenges. Free cash flow has also declined, showing a reduction in available cash for investments. However, the operating cash flow to net income ratio remains robust, suggesting efficient conversion of income into cash. The cash flow performance reflects operational efficiency but highlights a need for improvement in free cash generation.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 10.57B | 10.14B | 10.34B | 10.35B | 7.98B | Gross Profit |
| 4.30B | 3.68B | 4.06B | 4.33B | 3.39B | EBIT |
| 0.00 | 228.80M | 102.80M | 415.60M | 381.70M | EBITDA |
| 811.30M | 555.30M | 413.90M | 649.00M | 596.20M | Net Income Common Stockholders |
| 251.10M | 83.00M | 16.80M | 234.50M | 226.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.69B | 2.62B | 2.04B | 2.29B | 2.69B | Total Assets |
| 7.98B | 8.11B | 7.63B | 6.90B | 6.49B | Total Debt |
| 1.73B | 1.85B | 1.72B | 1.57B | 1.77B | Net Debt |
| -862.30M | -681.60M | -308.10M | -712.90M | -875.90M | Total Liabilities |
| 5.32B | 5.73B | 5.43B | 4.68B | 4.34B | Stockholders Equity |
| 2.67B | 2.37B | 2.20B | 2.22B | 2.15B |
| Cash Flow | Free Cash Flow | |||
| 447.30M | 686.30M | 108.30M | 283.30M | 277.30M | Operating Cash Flow |
| 654.10M | 949.50M | 459.90M | 616.20M | 527.40M | Investing Cash Flow |
| -269.80M | -320.70M | -476.20M | -335.90M | -217.80M | Financing Cash Flow |
| -325.60M | -123.60M | -245.90M | -639.80M | 1.35B |
Zalando SE Technical Analysis
Negative
17.45
Price Trends
18.14
Negative
17.12
Positive
15.42
Positive
Market Momentum
-0.25
Negative
45.20
Neutral
67.52
Neutral
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 17.45 is above the 20-day moving average (MA) of 17.28, below the 50-day MA of 18.14, and above the 200-day MA of 15.42, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 45.20 is Neutral, neither overbought nor oversold. The STOCH value of 67.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZLNDY.
Zalando SE Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $16.61B | 14.45 | 50.39% | ― | 0.79% | -2.70% | |
73 Outperform | $9.07B | 33.51 | 10.04% | ― | 4.18% | 201.10% | |
73 Outperform | $13.45B | 36.15 | 101.78% | ― | 6.40% | 891.13% | |
67 Neutral | $1.59B | 31.08 | 12.04% | ― | 5.73% | 81.83% | |
63 Neutral | $5.00B | 19.90 | -39.97% | ― | 2.18% | 5.77% | |
59 Neutral | $12.24B | 11.04 | -1.00% | 3.78% | 1.30% | -19.54% | |
47 Neutral | $2.46B | ― | 58.47% | ― | -3.99% | 68.27% |
* Consumer Cyclical Sector Average
Performance Comparison
ZLNDY
Zalando SE
17.15
2.92
20.52%
ULTA
Ulta Beauty
366.54
-162.47
-30.71%
ETSY
Etsy
47.18
-18.72
-28.41%
RVLV
Revolve Group
21.49
0.38
1.80%
CHWY
Chewy
32.51
16.42
102.05%
PTON
Peloton Interactive
6.32
2.04
47.66%
Zalando SE Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -5.93% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
Zalando delivered strong financial results in 2024, particularly in terms of revenue and GMV growth. The acquisition of ABOUT YOU and expansion in B2C and B2B segments are seen as positive strategic moves. However, there were challenges in B2B profitability, flat customer spend, and increased marketing costs. Overall, the positive aspects outweigh the challenges.Highlights
Strong Financial Performance in 2024
GMV grew by 4.5% to EUR 15.3 billion, and revenue grew by 4.2% to EUR 10.6 billion. Adjusted EBIT exceeded expectations by more than EUR 30 million, reaching EUR 511 million with a margin of 4.8%.
B2C and B2B Growth
B2C GMV and revenue saw significant growth with improved profitability. B2B revenues increased by 11.5% to EUR 953 million, driven by ZEOS fulfillment.
Customer Base Expansion
Active customers grew to 51.8 million, with a GMV growth of over 6% in the second half of the year. The new customer acquisition was particularly successful.
Sustainability Progress
Zalando reduced absolute emissions of its own operations by 82% since 2017 and emission intensity from private labels by 48% since 2018.
Strategic Acquisition of ABOUT YOU
Zalando secured more than 90% of ABOUT YOU's shares, expected to unlock EUR 100 million per year in synergies on an adjusted EBIT basis.
Lowlights
Temporary Lower Profitability in B2B
B2B adjusted EBIT of EUR 23 million, with a margin of 2.4%, was below last year's profitability level due to front-loaded overhead and infrastructure investments.
Flat Spend Per Customer
Spend per customer remained flat at around EUR 295, with order frequency and basket size developments offsetting each other.
Increased Marketing Costs
Marketing costs reached 10% of revenues in Q4, driven by ROI-based investments and a large rebranding campaign.
Company Guidance
During the call, Zalando provided detailed guidance for the fiscal year 2025, highlighting several key financial metrics and strategic initiatives. The company reported a GMV growth of 4.5% to EUR 15.3 billion and a revenue growth of 4.2% to EUR 10.6 billion for 2024, both in the upper half of their guidance. Adjusted EBIT exceeded expectations by more than EUR 30 million, reaching EUR 511 million with a margin of 4.8%. Looking forward, Zalando expects a GMV and revenue growth range of 4% to 9% for 2025, driven by expanding their B2C and B2B growth pillars. The B2C segment saw an increase in active customers to 51.8 million, with a flat spend per customer at EUR 295. For B2B, revenues increased by 11.5% to EUR 953 million, with a focus on logistics and software solutions for future growth. The company aims to continue margin expansion towards a 6% to 8% adjusted EBIT margin target by 2028. Additionally, Zalando plans to further enhance its loyalty program, expand into lifestyle areas, and pursue its ecosystem strategy, including the anticipated acquisition of ABOUT YOU, which is expected to unlock significant synergies and value.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.