Zalando (ZAL) Q1 2026 earnings summary

Executive summary

• Group GMV grew 21.7% year-over-year to €4.3 billion and revenue rose 23.8% to €3 billion, driven by ABOUT YOU integration, strong partner business, and AI initiatives.

• Adjusted EBIT increased 38.7% to €65 million, with margin improving from 1.9% to 2.2%, but reported EBIT was negative due to €97 million in restructuring costs.

• Active customers reached 62.3 million, up 18.8% year-over-year, with average spend per customer up 2.9% to €305.

• ABOUT YOU and Lounge by Zalando delivered double-digit GMV growth; Zalando Plus loyalty program surpassed 18.5 million members.

• Net loss for Q1 2026 was -€87.6 million, mainly due to non-recurring restructuring and acquisition-related costs.

Financial highlights

• Group GMV reached €4,294 million (+21.7% yoy pro-forma), revenue €2,996 million (+23.8% yoy pro-forma), and adjusted EBIT margin improved to 2.2% from 1.9% year-over-year.

• B2C gross profit increased 22.5% to over €1.1 billion, with gross margin at 41.5%; B2B gross margin improved 5.8pp to 18.2%, and adjusted EBIT quadrupled to €26 million.

• Free cash flow was -€512.9 million, mainly due to net working capital movements and seasonal partner payouts.

• Cash and cash equivalents stood at €1.26 billion at quarter-end, maintaining a 10% liquidity buffer.

• Capital expenditure increased to €69.7 million, focused on logistics infrastructure, fulfillment centers, and software.

Outlook and guidance

• Full-year 2026 guidance confirmed: GMV and revenue growth of 12–17%, adjusted EBIT between €660–740 million, and capex €240–300 million.

• Gross margin in Q2 expected to be slightly below previous year due to inventory clearance and ABOUT YOU dilution, with improvement anticipated in H2.

• Fulfillment network consolidation to complete in H1, with cost benefits expected from 2027 onward.

• Management remains confident despite volatile geopolitical and macroeconomic conditions; no major Q1 impact from Middle East conflict.