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Zalando SE (ZLNDY)
OTHER OTC:ZLNDY
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Zalando SE
(OTC:ZLNDY)
Rating:74Outperform
Price Target:
$17.50
▲(8.16%Upside)
Zalando SE (ZLNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.38B
Dividend YieldN/A
Average Volume (3M)619.00
Price to Earnings (P/E)28.9
Beta (1Y)1.03
Revenue Growth5.09%
EPS Growth138.87%
CountryUS
Employees15,463
SectorConsumer Cyclical
Sector Strength69
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.03
Shares Outstanding528,331,050
10 Day Avg. Volume0
30 Day Avg. Volume619
Financial Highlights & Ratios
PEG Ratio3.48
Price to Book (P/B)2.52
Price to Sales (P/S)0.00
P/FCF Ratio15.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.50Price Target Upside1.98% Upside
Rating ConsensusHold
Number of Analyst Covering0
Zalando SE Business Overview & Revenue Model
Company DescriptionZalando SE is a leading European e-commerce company specializing in fashion and lifestyle products. Headquartered in Berlin, Germany, Zalando operates in multiple countries across Europe, offering a wide range of clothing, footwear, accessories, and beauty products from various global brands. The company serves as a digital platform connecting consumers with a diverse selection of fashion and lifestyle items, leveraging its robust logistics network and digital capabilities to provide seamless shopping experiences.
How the Company Makes MoneyZalando SE primarily generates revenue through the sale of fashion and lifestyle products via its online platform. The company's key revenue streams include direct sales from its extensive catalog of clothing, footwear, and accessories, as well as commissions from third-party sales facilitated through its partner program. Zalando also earns money by offering value-added services such as premium membership programs, digital marketing services for brands, and fulfillment solutions for partners. The company has established significant partnerships with numerous fashion brands and leverages data-driven insights to enhance customer engagement and optimize its inventory and pricing strategies.
Zalando SE Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -11.39%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
Zalando's Q1 2025 showed strong growth in both GMV and revenue, improved profitability, and successful strategic initiatives like the loyalty program and acquisition plans. However, increased inventory levels and marketing costs present challenges. Overall, positives outweigh negatives.Q1-2025 Updates
Positive Updates
Accelerated GMV and Revenue Growth
Zalando achieved a GMV growth of 6.5% year-on-year and revenue growth of 7.9% in Q1 2025, driven by successful end-of-season sales and a strong spring/summer season start.
Improved Profitability
Adjusted EBIT for Q1 2025 was EUR47 million, representing a margin of 1.9%, up by 0.7 percentage points year-on-year, mainly due to a stronger gross margin in the B2C segment.
B2B Segment Revenue Growth
B2B segment revenue increased by 11.6%, significantly ahead of group revenue growth, driven by ZEOS Fulfillment and partnerships like the one with TikTok Shop.
Successful Loyalty Program Rollout
The upgraded Zalando Plus loyalty program was rolled out to 13 markets, with over 15% of the customer base participating, showing promising progress.
Strategic Acquisition of About You
The acquisition of About You is on track, with 91.5% of shares secured and regulatory approvals progressing, expected to close by summer.
Negative Updates
Increased Inventory Levels
Higher inventory levels were noted, driven by preparations for the spring/summer season and a low prior year baseline, which could pose risks if demand does not meet expectations.
Cash Decrease
Cash and cash equivalents decreased by EUR600 million from Q4 2024, mainly due to lower operating cash flow and restricted cash related to the About You tender offer.
Increased Marketing Costs
Marketing costs increased by 0.5 percentage points, driven by investments in performance marketing and several brand marketing campaigns.
Company Guidance
During Zalando SE's Q1 2025 earnings call, the company reported an accelerated GMV growth of 6.5% year-on-year, with revenue growth outpacing GMV growth at 7.9%. Zalando achieved an adjusted EBIT of EUR47 million, representing a margin of 1.9% and an improvement of 0.7 percentage points year-on-year. In their B2C segment, they saw double-digit growth in areas like lounge, sports, designer, and beauty propositions and expanded their upgraded loyalty program, Zalando Plus, to 13 markets, with over 15% customer participation. The B2B segment reported an 11.6% revenue growth, driven significantly by ZEOS Fulfillment. Despite geopolitical and macroeconomic changes, Zalando confirmed their full-year guidance for 2025, highlighting a focus on growth acceleration and profitability.Zalando SE Financial Statement Overview
Summary
Zalando SE demonstrates strong financial health with consistent revenue growth, a solid gross profit margin, and improved net profit margin. The balance sheet is robust, though increasing liabilities warrant attention. Cash flow remains strong, despite a decrease in operating cash flow.Income Statement
Zalando SE shows a solid income statement with consistent revenue growth from €10.14 billion to €10.75 billion in TTM (Trailing-Twelve-Months), indicating a stable demand. Gross profit margin stands at 40.8% for TTM, reflecting efficient cost management. The net profit margin improved to 2.5% from 2.4% the previous year, signaling enhanced profitability. EBIT and EBITDA margins are stable at 3.8% and 7.7% respectively, showing good operating efficiency.82
Very Positive
Balance Sheet
The balance sheet of Zalando SE is robust with a debt-to-equity ratio of 0.64, indicating moderate leverage. The equity ratio is 33.2%, reflecting a strong capital structure with substantial equity. Return on equity improved slightly to 10% in TTM, evidencing efficient use of capital. However, the total liabilities show a rising trend, which could pose a risk if not managed properly.75
Positive
Cash Flow
Zalando SE's cash flow statement demonstrates solid free cash flow generation with a growth rate of 1.7% in TTM. Operating cash flow to net income ratio is robust at 2.3, highlighting strong cash operations. The free cash flow to net income ratio is 1.7, indicating efficient cash conversion. However, a decrease in operating cash flow from the previous year could be a concern if the trend continues.78
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 |
| EBITDA | 811.30M | 555.30M | 395.30M | 648.10M | 596.20M |
| Net Income | 251.10M | 83.00M | 16.80M | 234.50M | 226.10M |
Balance Sheet | |||||
| Total Assets | 7.98B | 8.11B | 7.63B | 6.90B | 6.49B |
| Cash, Cash Equivalents and Short-Term Investments | 2.69B | 2.62B | 2.04B | 2.29B | 2.69B |
| Total Debt | 1.73B | 1.85B | 1.72B | 1.57B | 1.77B |
| 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
16.18
Price Trends
16.87
Negative
17.44
Negative
17.08
Negative
Market Momentum
-0.20
Negative
45.78
Neutral
18.93
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 16.18 is below the 20-day moving average (MA) of 16.18, below the 50-day MA of 16.87, and below the 200-day MA of 17.08, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 18.93 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.14B | 8.22 | 19.00% | 3.04% | -5.90% | -11.16% | |
77 Outperform | $12.80B | 32.26 | 12.96% | ― | 11.34% | ― | |
75 Outperform | $1.52B | 30.43 | 11.97% | ― | 9.09% | 106.50% | |
74 Outperform | $8.38B | 28.93 | 10.52% | ― | 5.09% | 138.87% | |
64 Neutral | $6.22B | 42.37 | -39.97% | ― | 2.18% | -32.87% | |
62 Neutral | $16.95B | 10.84 | -7.26% | 3.63% | 1.71% | -25.14% | |
55 Neutral | $7.24B | ― | 17.86% | ― | -0.89% | 46.62% |
* Consumer Cyclical Sector Average
Performance Comparison
ZLNDY
Zalando SE
16.18
3.49
27.50%
VIPS
Vipshop
15.80
2.40
17.91%
W
Wayfair
56.44
5.30
10.36%
ETSY
Etsy
59.64
-2.75
-4.41%
RVLV
Revolve Group
21.39
3.98
22.86%
CART
Maplebear
49.11
13.54
38.07%
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.