Zalando’s third-quarter gross merchandise volume (GMV) and revenue exceeded analyst expectations, supported by strong business-to-business growth. However, the German online fashion retailer’s gross margin declined amid increased price investments in its consumer business and a larger contribution from its lower-margin business-to-business operations.
GMV rose 7.5% year on year to €4.54 billion, from €4.22 billion. Revenue increased 5.1% to €3.18 billion, compared with €3.02 billion a year earlier, beating expectations for 4.4% growth.
Business-to-consumer revenue grew 2.8% to €2.83 billion, while business-to-business revenue climbed 27.9% to €354.40 million. Gross margin fell 90 basis points to 38.7%, below the 39.9% consensus.
Group EBIT rose 10.6% to €106.50 million from €96.30 million, in line with expectations. The EBIT margin was 3.4%, supported by a 90-basis-point reduction in fulfilment costs. Zalando recorded a net loss of €18 million, compared with net income of €12.50 million a year earlier. Basic loss per share was €0.07, versus analysts’ forecast of earnings of €0.31 per share.
Jefferies analysts said clearance efforts on sneakers had helped Zalando manage inventories. Inventory stood at 18.4% of trailing 12-month sales, down from 21.8% a year earlier.
The company reiterated its 2026 guidance, forecasting GMV growth in the lower half of its 12% to 17% range. It also maintained its full-year EBIT forecast of €680 million to €720 million.
Sources: Investing.com News.