Education
About Us
Working with TipRanks
Follow Us
Zalando SE (ZLNDY)
OTHER OTC:ZLNDY
Top Page
Zalando SE
(OTC:ZLNDY)
Select Model
Select Model
Rating:71Outperform
Price Target:
$15.00
▲(2.95% Upside)
Zalando SE's overall stock score reflects strong financial performance and positive earnings call highlights, including strategic growth initiatives. However, technical analysis indicates bearish trends, and valuation metrics suggest the stock is relatively expensive, which tempers the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and successful strategic initiatives, supporting long-term business expansion.
Strategic Partnerships
Long-term partnerships enhance market position and brand visibility, potentially driving customer engagement and sales in the sports category.
B2B Segment Growth
Strong B2B growth diversifies revenue streams and strengthens business resilience, supporting sustainable long-term profitability.
Negative Factors
Profitability Challenges
Profitability pressures from acquisitions can strain financial resources and limit investment in growth initiatives, impacting long-term margins.
Increased Costs
Rising operational costs can erode profit margins, necessitating efficiency improvements to sustain long-term competitiveness.
Cash Reserves Decrease
Reduced cash reserves limit financial flexibility and may constrain the company's ability to invest in strategic opportunities.
Zalando SE (ZLNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.76B
Dividend YieldN/A
Average Volume (3M)1.11K
Price to Earnings (P/E)29.2
Beta (1Y)0.88
Revenue Growth14.50%
EPS Growth20.27%
CountryUS
Employees15,463
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.04
Shares Outstanding528,363,950
10 Day Avg. Volume511
30 Day Avg. Volume1,112
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)3.15
Price to Sales (P/S)0.79
P/FCF Ratio18.78
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit1.40
Enterprise Value/Ebitda7.81
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 generates revenue primarily through the sale of fashion and lifestyle products on its platform. The company's revenue model is predominantly based on a marketplace approach, where it sells products directly to consumers as well as allowing third-party retailers to list their products on its site for a commission. Key revenue streams include direct sales from its own inventory, commission fees from third-party merchants, and premium services such as Zalando Lounge, which offers exclusive offers and discounts to members. Additionally, Zalando has established partnerships with various fashion brands and retailers to enhance its product offerings and expand its market reach, further contributing to its earnings through increased sales volume and brand collaborations.
Zalando SE Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 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.Q3-2025 Updates
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.
Expansion into Lifestyle and Sports
New partnership with the German Football Federation until 2030, aiming to elevate Zalando as a leading football destination. Partnerships with marathons in Europe to boost running category.
B2B Segment Double-Digit Growth
ZEOS Fulfillment and SCAYLE contributed to continued double-digit growth in B2B segment, with a 15.6% increase in combined revenues.
Successful Integration of ABOUT YOU
Combined active customer base of over 60 million and confirmation of combined guidance for full year 2025, including ABOUT YOU from July 11, 2025.
New CFO Appointment
Anna Dimitrova will join as new CFO effective January 1, 2026, bringing experience in capital-intensive, technology-driven sectors.
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%.
Increased Fulfillment and Marketing Costs
Fulfillment costs increased by 0.6 percentage points to 24.3% of revenue, and marketing costs rose to 9.3% of revenues due to the consolidation of ABOUT YOU.
Lower Group Gross Margin
Group gross margin decreased by 1.1 percentage points to 39.6%, affected by commercial activations and the inclusion of ABOUT YOU's lower gross margin commerce business.
Decrease in Cash Reserves
Cash and cash equivalents decreased by EUR 1.3 billion from the end of last year, primarily due to the paydown of convertible bonds and the acquisition of ABOUT YOU.
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
Zalando SE demonstrates solid financial health with strong revenue growth and efficient cost management. The balance sheet shows improved leverage, though there is room for enhancing equity strength. Cash flow generation is robust, but aligning cash flow with profitability remains an area for improvement.Income Statement
Zalando SE has shown consistent revenue growth with a TTM increase of 5.78%, indicating strong market demand. The gross profit margin remains robust at 40.66%, reflecting efficient cost management. However, the net profit margin is relatively low at 2.47%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are stable, indicating operational efficiency.78
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 0.60, indicating a better leverage position. Return on equity is moderate at 10.17%, showing decent profitability relative to shareholder investments. The equity ratio is stable, suggesting a balanced capital structure. However, the company should continue to focus on strengthening its equity base to reduce financial risk.72
Positive
Cash Flow
Zalando SE's free cash flow growth is impressive at 67.00%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.10, indicating a need for better alignment between cash flow and profitability. The free cash flow to net income ratio of 0.57 suggests efficient conversion of profits into cash.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.57B | 10.57B | 10.14B | 10.34B | 10.35B | 7.98B |
| Gross Profit | 4.67B | 4.30B | 3.68B | 4.06B | 4.33B | 3.39B |
| EBITDA | 838.60M | 811.30M | 572.50M | 395.30M | 660.20M | 596.20M |
| Net Income | 241.30M | 251.10M | 83.00M | 16.80M | 234.50M | 226.10M |
Balance Sheet | ||||||
| Total Assets | 9.00B | 7.98B | 8.11B | 7.63B | 6.90B | 6.49B |
| Cash, Cash Equivalents and Short-Term Investments | 1.44B | 2.69B | 2.62B | 2.04B | 2.29B | 2.69B |
| Total Debt | 1.44B | 1.73B | 1.85B | 1.72B | 1.57B | 1.77B |
| Total Liabilities | 6.13B | 5.32B | 5.73B | 5.43B | 4.68B | 4.34B |
| Stockholders Equity | 2.83B | 2.67B | 2.37B | 2.20B | 2.22B | 2.15B |
Cash Flow | ||||||
| Free Cash Flow | 397.30M | 447.30M | 686.30M | 108.30M | 283.30M | 277.30M |
| Operating Cash Flow | 610.80M | 654.10M | 949.50M | 459.90M | 616.20M | 527.40M |
| Investing Cash Flow | -1.14B | -269.80M | -320.70M | -476.20M | -335.90M | -217.80M |
| Financing Cash Flow | -545.20M | -325.60M | -123.60M | -245.90M | -639.80M | 1.35B |
Zalando SE Technical Analysis
Positive
14.57
Price Trends
13.97
Positive
14.52
Positive
15.59
Negative
Market Momentum
0.20
Positive
55.42
Neutral
48.40
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 below the 20-day moving average (MA) of 14.75, above the 50-day MA of 13.97, and below the 200-day MA of 15.59, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 55.42 is Neutral, neither overbought nor oversold. The STOCH value of 48.40 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 | $8.24B | 8.77 | 17.83% | 2.46% | -2.97% | -8.57% | |
77 Outperform | $2.17B | 39.44 | 12.19% | ― | 9.24% | 35.68% | |
72 Outperform | $6.09B | 19.91 | 20.83% | 3.10% | 13.37% | -19.37% | |
71 Outperform | $7.76B | 29.19 | 10.07% | ― | 14.50% | 20.27% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $14.99B | -44.94 | ― | ― | 3.35% | 42.99% | |
57 Neutral | $6.10B | 43.18 | ― | ― | 1.98% | -20.98% |
* Consumer Cyclical Sector Average
ZLNDY
Zalando SE
14.91
-1.42
-8.69%
VIPS
Vipshop
16.71
3.55
26.98%
W
Wayfair
114.99
66.36
136.46%
ETSY
Etsy
61.77
9.72
18.67%
RVLV
Revolve Group
30.37
-0.63
-2.03%
MNSO
MINISO Group Holding
19.29
-3.88
-16.75%
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.