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Zalando SE (ZLNDY)
OTHER OTC:ZLNDY
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Zalando SE
(OTC:ZLNDY)
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Rating:69Neutral
Price Target:
$17.00
▲(19.38% Upside)
Zalando SE's overall stock score reflects strong financial performance and a positive earnings call, highlighting growth and strategic initiatives. However, technical indicators suggest caution, and valuation metrics indicate the stock may be overvalued. Addressing cash flow challenges and navigating consumer demand volatility are crucial for sustaining growth.
Zalando SE (ZLNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.97B
Dividend YieldN/A
Average Volume (3M)1.11K
Price to Earnings (P/E)26.9
Beta (1Y)0.91
Revenue Growth7.85%
EPS Growth81.67%
CountryUS
Employees15,463
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.21
Shares Outstanding528,339,970
10 Day Avg. Volume511
30 Day Avg. Volume1,112
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue0.74
Enterprise Value/Gross Profit1.81
Enterprise Value/Ebitda9.57
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
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 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:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant achievements in revenue growth, strategic initiatives, and the successful integration of ABOUT YOU. However, challenges such as a slight decline in gross margin, inventory management, and a volatile consumer demand environment are notable concerns.Q2-2025 Updates
Positive Updates
Strong GMV and Revenue Growth
The company achieved a GMV growth of 6.2% and revenue growth of 7.6% year-on-year, marking significant accomplishments amidst a changing macroeconomic environment.
Adjusted EBIT Improvement
Zalando reported an adjusted EBIT of EUR 232 million with a margin of 4.4%, improving by 0.3 percentage points year-on-year.
Launch of AI-Powered Discovery Feed
Zalando launched a new AI-powered discovery feed in its app, enhancing customer engagement with personalized content and recommendations.
Successful Integration of ABOUT YOU
The acquisition and integration of ABOUT YOU are expected to result in significant synergies, contributing to a projected adjusted EBIT of EUR 550 million to EUR 600 million for the combined group.
Expansion of Loyalty Program
The loyalty program surpassed 10 million members, contributing significantly to customer engagement and retention.
B2B Segment Growth
B2B revenues grew by 12.2% year-over-year, driven by ZEOS fulfillment, with adjusted EBIT margin increasing by 1.3 percentage points to 4.3%.
Negative Updates
Slight Decline in Gross Margin
Group gross margin decreased by 0.8 percentage points to 40.8%, affected by business mix effects and seasonality shifts.
Consumer Demand Volatility
The company continues to face a volatile market environment with muted consumer demand, impacting growth expectations.
Inventory Increase
Inventories increased, reflecting preparations for upcoming seasons and strategic expansion, although the company aims to reduce reliance on inventory long-term.
One-off Costs Impacting Other Operating Expenses
Other operating expenses increased due to a EUR 50 million one-time effect related to organizational changes.
Company Guidance
During the Q2 2025 earnings call, Zalando SE provided comprehensive guidance for the fiscal year 2025. The company anticipates 12% to 15% growth in GMV, amounting to EUR 17.2 billion to EUR 17.6 billion, and revenue growth between 14% to 17%, reaching EUR 12.1 billion to EUR 12.4 billion, factoring in the recent ABOUT YOU acquisition. On a pro forma basis, the guidance reflects a year-on-year increase of 4% to 7% in GMV and revenue. Adjusted EBIT for the combined group is projected between EUR 550 million and EUR 600 million, slightly exceeding Zalando's initial standalone guidance by EUR 15 million at the midpoint. The guidance emphasizes continued focus on profitable growth, strategic ecosystem expansion, and synergies from the ABOUT YOU acquisition, while also reflecting anticipated efficiencies in operating expenses and early synergies.Zalando SE Financial Statement Overview
Summary
Zalando SE demonstrates strong revenue growth and stable operational performance, with healthy gross profit margins. The balance sheet shows improved leverage and a solid equity position, enhancing financial stability. However, the significant decline in free cash flow raises concerns about cash management. Overall, the company is on a positive trajectory but needs to address cash flow challenges to sustain growth.Income Statement
Zalando SE shows strong revenue growth in the TTM period, with a 1.79% increase, indicating a positive trajectory. The gross profit margin remains healthy at around 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 consistent operational performance.75
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 0.60 in the TTM period, showing a reduction in leverage and a stronger equity position. Return on equity is at 10.17%, indicating decent profitability relative to shareholder equity. The equity ratio stands at approximately 34.34%, suggesting a balanced capital structure. Overall, the balance sheet reflects stability with manageable leverage.70
Positive
Cash Flow
Zalando SE's free cash flow has decreased significantly by 47.70% in the TTM period, highlighting potential cash flow challenges. The operating cash flow to net income ratio is 0.10, indicating a lower conversion of net income into cash. The free cash flow to net income ratio is 0.57, suggesting moderate cash generation relative to net income. While there are concerns about cash flow, the company maintains a positive cash position.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.94B | 10.57B | 10.14B | 10.34B | 10.35B | 7.98B |
| Gross Profit | 4.45B | 4.30B | 3.68B | 4.06B | 4.33B | 3.39B |
| EBITDA | 840.50M | 811.30M | 555.30M | 395.30M | 648.10M | 596.20M |
| Net Income | 270.80M | 251.10M | 83.00M | 16.80M | 234.50M | 226.10M |
Balance Sheet | ||||||
| Total Assets | 8.13B | 7.98B | 8.11B | 7.63B | 6.90B | 6.49B |
| Cash, Cash Equivalents and Short-Term Investments | 2.66B | 2.69B | 2.62B | 2.04B | 2.29B | 2.69B |
| Total Debt | 1.68B | 1.73B | 1.85B | 1.72B | 1.57B | 1.77B |
| Total Liabilities | 5.34B | 5.32B | 5.73B | 5.43B | 4.68B | 4.34B |
| Stockholders Equity | 2.79B | 2.67B | 2.37B | 2.20B | 2.22B | 2.15B |
Cash Flow | ||||||
| Free Cash Flow | 237.90M | 447.30M | 686.30M | 108.30M | 283.30M | 277.30M |
| Operating Cash Flow | 415.20M | 654.10M | 949.50M | 459.90M | 616.20M | 527.40M |
| Investing Cash Flow | -652.30M | -269.80M | -320.70M | -476.20M | -335.90M | -217.80M |
| Financing Cash Flow | -145.50M | -325.60M | -123.60M | -245.90M | -639.80M | 1.35B |
Zalando SE Technical Analysis
Negative
14.24
Price Trends
15.12
Negative
15.31
Negative
16.67
Negative
Market Momentum
-0.16
Positive
33.89
Neutral
-0.32
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 14.24 is below the 20-day moving average (MA) of 15.38, below the 50-day MA of 15.12, and below the 200-day MA of 16.67, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 33.89 is Neutral, neither overbought nor oversold. The STOCH value of -0.32 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $6.79B | 20.45 | 22.92% | 2.87% | 10.93% | -10.89% | |
| ― | $8.69B | 9.93 | 17.79% | 2.72% | -5.24% | -12.89% | |
| ― | $1.66B | 36.99 | 10.36% | ― | 10.68% | 37.84% | |
| ― | $7.97B | 26.91 | 10.07% | ― | 7.85% | 81.67% | |
| ― | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
| ― | $13.35B | -40.02 | ― | ― | 3.35% | 42.99% | |
| ― | $6.46B | 52.15 | ― | ― | 1.98% | -20.98% |
* Consumer Cyclical Sector Average
ZLNDY
Zalando SE
14.24
-0.95
-6.25%
VIPS
Vipshop
17.63
3.94
28.78%
W
Wayfair
102.40
62.25
155.04%
ETSY
Etsy
61.93
9.16
17.36%
RVLV
Revolve Group
22.89
-2.07
-8.29%
MNSO
MINISO Group Holding
21.36
2.32
12.18%
Zalando SE Corporate Events
Zalando SE Earnings Call: Growth Amid Challenges
Aug 8, 2025
Zalando SE’s recent earnings call presented a balanced outlook, showcasing strong growth metrics and strategic advancements, particularly in AI and B2B segments. However, the company also acknowledged challenges stemming from geopolitical conditions, inventory management, and cost pressures.
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.