Zalando 2025 Surge: Double‑Digit Growth, AI Boost, & Share Buy‑Back Plan

Zalando SE released its 2025 financial results, highlighting double‑digit growth in both revenue and gross‑merchant volume. The company attributes this performance to strategic initiatives, most notably the acquisition of About You, which has accelerated the realization of previously forecasted synergies. Management now expects the group to reach its annual synergy target ahead of schedule.

Consumer‑Direct Growth via Multi‑App Strategy

In the consumer‑direct segment, Zalando implemented a multi‑app strategy that has effectively increased gross‑merchant volume. This approach leverages platform diversification to capture distinct customer segments, thereby enhancing market penetration and transaction volumes across the group’s retail portfolio.

B2B Division Performance

The B2B arm reported a substantial rise in sales, coupled with a doubling of adjusted earnings before interest and taxes (EBIT). This improvement reflects the division’s expanded footprint and operational efficiency gains. Key contributors include an elevated demand for enterprise‑grade e‑commerce solutions and the successful deployment of Zalando’s proprietary B2B software platform, SCAYLE.

SCAYLE’s US Expansion and Levi’s Partnership

SCAYLE has broadened its presence into the United States, securing a significant partnership with Levi’s to support the denim brand’s direct‑to‑consumer initiatives. The alliance provides Levi’s with advanced analytics, supply‑chain optimization, and customer‑experience tools, positioning SCAYLE as a pivotal technology partner in the U.S. market.

Building on its financial momentum, Zalando announced a share buy‑back programme that may involve up to 20 million shares, with a total purchase value of up to €300 million. The buy‑back will be executed between 12 March and 14 July 2026, under strict compliance with market‑abuse regulations and through independent banking execution. The programme aims to reduce share capital and return surplus cash to shareholders, reinforcing the company’s commitment to shareholder value creation.

2028 Outlook and AI‑Driven Growth

Zalando reaffirmed its mid‑term outlook for 2028, targeting an annual growth rate for gross‑merchant volume and revenue within the high single‑digits. Profit margin expansion is projected into the upper single‑digits. The company emphasizes that the continued integration of artificial‑intelligence innovations across its platforms will underpin further acceleration of growth and profitability through 2026.

Sector Context The apparel and fashion e‑commerce sector is experiencing heightened competition from both traditional retailers and new digital entrants. Zalando’s strategy—combining platform diversification, B2B expansion, and AI‑enhanced customer experience—positions it favorably to capture market share while maintaining operational resilience. The company’s balanced approach to growth and shareholder returns reflects broader corporate governance trends prioritizing long‑term value creation.