Zalando SE (ZLNDY) AI Stock Analysis

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Zalando SE

(OTC:ZLNDY)

Rating:68Neutral

Price Target:

$14.50

▲(6.30% Upside)

Zalando SE's overall stock score is driven by strong financial performance and positive earnings call insights, offset by bearish technical indicators and moderate valuation. The company's strategic initiatives and growth potential are promising, but current market conditions and operational challenges pose risks.

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

Market Cap

$7.09B

Dividend YieldN/A

Average Volume (3M)1.01K

Price to Earnings (P/E)23.9

Beta (1Y)1.03

Revenue Growth7.85%

EPS Growth81.67%

CountryUS

Employees15,463

SectorConsumer Cyclical

Sector Strength72

IndustrySpecialty Retail

Share Statistics

EPS (TTM)0.21

Shares Outstanding528,331,050

10 Day Avg. Volume0

30 Day Avg. Volume1,007

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.14

Enterprise Value/Revenue0.75

Enterprise Value/Gross Profit1.83

Enterprise Value/Ebitda9.76

Forecast

1Y Price Target

$14.50

Price Target Upside6.30% Upside

Rating ConsensusHold

Number of Analyst Covering1

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:Aug 05, 2025

(Q2-2025)

% Change Since: -7.84%|

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Neutral

The earnings call presented a balanced view with strong growth metrics and strategic advancements in AI and B2B segments, but also highlighted challenges related to geopolitical conditions, inventory management, and cost pressures.

Q2-2025 Updates

Positive Updates

Strong Financial Performance

Zalando reported a GMV growth of 6.2% and revenue growth of 7.6% year-on-year, with an adjusted EBIT of EUR 232 million, marking a margin improvement of 0.3 percentage points to 4.4%.

AI-Driven Innovation

Zalando launched a new AI-powered discovery feed, enhancing the user experience with personalized product recommendations and high-quality content.

B2B Growth and Partnerships

The B2B segment maintained double-digit growth, driven by ZEOS fulfillment, and announced the launch of the ZEOS Shopify application to support merchant e-commerce operations.

ABOUT YOU Acquisition

Zalando completed the acquisition of a 91.5% stake in ABOUT YOU, with plans to acquire the remaining shares, signaling a significant step in building a pan-European ecosystem for fashion e-commerce.

Active Customer Growth

Active customers grew by 6.1% to reach 52.9 million, highlighting successful engagement and customer acquisition strategies.

Negative Updates

Geopolitical and Macroeconomic Challenges

The company faced a fast-changing geopolitical and macroeconomic environment, impacting consumer demand and posing challenges to growth.

Inventory and Working Capital Concerns

Inventories were higher, reflecting preparations for upcoming seasons, with a net working capital of minus EUR 108 million, raising concerns about inventory management.

Gross Margin Pressure

Group gross margin decreased slightly by 0.8 percentage points to 40.8% due to various factors including prior year sell-through and business mix effects.

Cost Challenges

There were increased costs from logistics, marketing, and administrative expenses, and restructuring costs in customer care and content production.

Company Guidance

In the Q2 2025 earnings call, Zalando SE presented a comprehensive overview of its financial performance and strategic advancements. The company reported a 6.2% growth in Gross Merchandise Volume (GMV) and a 7.6% increase in revenue year-on-year for the first half of 2025, achieving an adjusted EBIT of EUR 232 million with a margin of 4.4%. The call highlighted key strategic initiatives, including the launch of a new AI-powered discovery feed and continued expansion in B2C and B2B segments. The company's acquisition of a 91.5% stake in ABOUT YOU was also emphasized, with expectations to achieve EUR 100 million in annual EBIT synergies by 2029. Looking ahead, Zalando forecasted a GMV and revenue growth of 4% to 7% year-on-year, with an adjusted EBIT ranging from EUR 550 million to EUR 600 million for the full year. The guidance reflects the company's focus on profitable growth amid a volatile market environment.

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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

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

Technical Analysis Sentiment

Negative

Last Price13.64

Price Trends

50DMA

16.04

Negative

100DMA

16.99

Negative

200DMA

16.98

Negative

Market Momentum

MACD

-0.76

Positive

RSI

25.64

Positive

STOCH

5.10

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 13.64 is below the 20-day moving average (MA) of 15.15, below the 50-day MA of 16.04, and below the 200-day MA of 16.98, indicating a bearish trend. The MACD of -0.76 indicates Positive momentum. The RSI at 25.64 is Positive, neither overbought nor oversold. The STOCH value of 5.10 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
CART	80 Outperform	$13.64B	29.89	14.54%	―	10.47%	―
VIPS	75 Outperform	$7.90B	7.98	19.00%	3.14%	-5.90%	-11.16%
RVLV	71 Outperform	$1.40B	31.21	10.36%	―	10.68%	37.84%
ZLNDY	68 Neutral	$7.09B	23.90	10.07%	―	7.85%	81.67%
ETSY	63 Neutral	$6.04B	48.71	-39.97%	―	2.38%	-38.88%
Sector *	62 Neutral	AU$3.09B	28.98	25.32%	4.54%	2.36%	-27.72%
W	56 Neutral	$9.38B	―	17.86%	―	0.87%	54.67%

* Consumer Cyclical Sector Average

Performance Comparison

ZLNDY

Zalando SE

13.29

0.78

6.24%

VIPS

Vipshop

15.30

1.76

13.00%

Wayfair

71.76

33.55

87.80%

ETSY

Etsy

61.77

8.58

16.13%

RVLV

Revolve Group

19.09

-2.61

-12.03%

CART

Maplebear

51.77

19.41

59.98%

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: Aug 07, 2025