Zalando SE (ZLNDY)
OTHER OTC:ZLNDY
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Zalando SE
(OTC:ZLNDY)
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Rating:64Neutral
Price Target:
$12.50
▼(-14.21% Downside)
Action:DowngradedDate:03/17/26
The score is driven primarily by improving financial performance and especially strong cash generation, supported by a generally constructive earnings-call outlook and confirmed guidance. The biggest offsets are elevated valuation (very high P/E) and limited visibility into technical trends due to missing indicator data.
Positive Factors
Strong cash generation
Consistent, large operating and free cash flow provides durable internal funding for logistics, platform investments, debt reduction and acquisitions. FCF generally exceeding earnings signals solid cash conversion, supporting strategic flexibility and lowering reliance on external financing over the medium term.
Negative Factors
Thin, volatile margins
Sustained thin net margins and step-downs in gross margin limit ability to self-fund growth and leave earnings vulnerable to pricing, returns and promotional pressure. Margin volatility also drives inconsistent ROE and constrains long-term profitability improvement despite top-line recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, large operating and free cash flow provides durable internal funding for logistics, platform investments, debt reduction and acquisitions. FCF generally exceeding earnings signals solid cash conversion, supporting strategic flexibility and lowering reliance on external financing over the medium term.
Read all positive factors
Zalando SE (ZLNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.62B
Dividend YieldN/A
Average Volume (3M)1.11K
Price to Earnings (P/E)31.7
Beta (1Y)0.89
Revenue Growth14.50%
EPS Growth20.27%
CountryUS
Employees15,463
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.24
Shares Outstanding528,387,940
10 Day Avg. Volume511
30 Day Avg. Volume1,112
Financial Highlights & Ratios
PEG Ratio-1.81
Price to Book (P/B)2.32
Price to Sales (P/S)0.55
P/FCF Ratio6.62
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit1.06
Enterprise Value/Ebitda6.13
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.89
Revenue Forecast (FY)$16.21B
Zalando SE Business Overview & Revenue Model
Company Description
Zalando 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-a...
How the Company Makes Money
Zalando makes money primarily through a combination of (1) direct retail sales and (2) platform/service revenues.
1) Direct retail (wholesale) business: Zalando purchases inventory from brands and sells it to consumers through its apps and websi...
Zalando SE Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a strong quarter for Zalando with significant growth in both B2C and B2B segments, bolstered by strategic partnerships and successful integration of ABOUT YOU. However, the inclusion of ABOUT YOU has also brought challenges, notably in terms of profitability and increased costs. Overall, the positive achievements and strategic developments outweigh the negatives, but the financial challenges remain notable.Positive Updates
Strong Financial Performance in Q3 2025
Achieved 6.7% year-on-year pro forma GMV growth and 7.5% pro forma revenue growth. Adjusted EBIT reached EUR 96 million, slightly surpassing last year's figures.
Negative Updates
Impact of ABOUT YOU on Profitability
Inclusion of ABOUT YOU negatively impacted adjusted EBIT margin, lowering it by 0.7 percentage points to 3.2%.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Financial Performance in Q3 2025
Achieved 6.7% year-on-year pro forma GMV growth and 7.5% pro forma revenue growth. Adjusted EBIT reached EUR 96 million, slightly surpassing last year's figures.
Read all positive updates
Company Guidance
In the Q3 2025 earnings call, Zalando reported strong financial performance, with a 6.7% year-on-year pro forma GMV growth and a 7.5% pro forma revenue growth. The company's profitability remained solid, with an adjusted EBIT of EUR 96 million, slightly surpassing last year's figures. The B2B segment achieved a 15.6% year-over-year revenue increase, driven by ZEOS Fulfillment and the inclusion of SCAYLE. Zalando confirmed its full-year 2025 guidance, including the results of ABOUT YOU from July 11, 2025, onwards. The company also secured a significant partnership with the German Football Federation, positioning itself as a leading destination for sports enthusiasts. With over 60 million active customers, Zalando aims to accelerate growth and increase profit, aligning with its midterm targets for 2028.Zalando SE Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.86B | 10.57B | 10.14B | 10.34B | 10.35B |
| Gross Profit | 4.43B | 4.30B | 3.68B | 4.06B | 4.33B |
| EBITDA | 780.72M | 811.30M | 572.50M | 395.30M | 660.20M |
| Net Income | 206.61M | 251.10M | 83.00M | 16.80M | 234.50M |
Balance Sheet | |||||
| Total Assets | 9.69B | 7.98B | 8.11B | 7.63B | 6.90B |
| Cash, Cash Equivalents and Short-Term Investments | 1.88B | 2.69B | 2.62B | 2.04B | 2.29B |
| Total Debt | 1.44B | 1.73B | 1.85B | 1.72B | 1.57B |
| Total Liabilities | 6.86B | 5.32B | 5.73B | 5.43B | 4.68B |
| Stockholders Equity | 2.82B | 2.67B | 2.37B | 2.20B | 2.22B |
Cash Flow | |||||
| Free Cash Flow | 987.72M | 447.30M | 686.30M | 108.30M | 283.30M |
| Operating Cash Flow | 1.08B | 654.10M | 949.50M | 459.90M | 616.20M |
| Investing Cash Flow | -1.04B | -269.80M | -320.70M | -476.20M | -335.90M |
| Financing Cash Flow | -726.55M | -325.60M | -123.60M | -245.90M | -639.80M |
Zalando SE Technical Analysis
Positive
14.57
Price Trends
12.54
Positive
13.31
Negative
14.19
Negative
Market Momentum
-0.11
Negative
55.00
Neutral
65.13
Neutral
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 14.57 is above the 20-day moving average (MA) of 12.49, above the 50-day MA of 12.54, and above the 200-day MA of 14.19, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 55.00 is Neutral, neither overbought nor oversold. The STOCH value of 65.13 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $7.61B | 8.74 | 17.98% | 2.46% | -2.97% | -8.57% | |
69 Neutral | $5.24B | 28.32 | 25.85% | 3.10% | 13.37% | -19.37% | |
67 Neutral | $1.78B | 29.01 | 12.82% | ― | 9.24% | 35.68% | |
64 Neutral | $6.62B | 31.67 | 7.72% | ― | 14.50% | 20.27% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $5.20B | 33.41 | -15.36% | ― | 1.98% | -20.98% | |
54 Neutral | $9.70B | -41.81 | 11.30% | ― | 3.35% | 42.99% |
* Consumer Cyclical Sector Average
ZLNDY
Zalando SE
12.78
-4.66
-26.70%
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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.