Q4 2025 Zalando SE Earnings Call Transcript
Key Points
- Zalando SE (ZLDSF) achieved strong double-digit growth in 2025, with revenue up nearly 17% and adjusted EBIT climbing to EUR591 million.
- The company successfully completed the strategic acquisition of ABOUT YOU, enhancing its long-term growth potential.
- Zalando SE (ZLDSF) is leveraging AI to improve customer experience and operational efficiency, with AI-driven initiatives like size and fit recommendations reducing size-related returns by over 8%.
- The B2B segment saw significant growth, with revenues exceeding EUR1 billion, a 14.6% increase, and more than doubling adjusted EBIT.
- Zalando SE (ZLDSF) announced a share buyback program of up to EUR300 million, reflecting confidence in the company's future and commitment to shareholder value.
- The retail gross margin declined by 1.2 percentage-points, impacted by the strong performance of Zalando Lounge, which operates on a structurally lower gross profit margin profile.
- The acquisition of ABOUT YOU, while strategically beneficial, currently has a lower margin profile than Zalando's B2C business, adversely impacting the group gross margin by 0.5 percentage-points.
- Zalando SE (ZLDSF) faces challenges in inventory management, with increased inventory levels in certain categories like Lounge and Sports, impacting retail gross margins in the first half of 2026.
- The company is experiencing a dilution in B2C gross margin due to the inclusion of ABOUT YOU and current developments in retail gross margin.
- Despite strong growth, the company acknowledges the need for further improvements in operational efficiency and cost management to achieve its mid-term targets.
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Good morning. Welcome to Zalando's annual press conference and business update. My name is Simon Thiel, and I'm Heading Corporate Affairs. I wanted to say thank you for joining us today. We will be presenting our fully results 2025 and sharing our plans for the future, and we're delighted to have so many of you joining our broadcast today.
Good morning. Also from my side. My name is Patrick Kofler and I'm Heading the Investor Relations department. We've gathered the press, investors, and analysts for today's event. It's a pleasure to have you all here.
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We will start our conference with a pre-recorded presentation by our co-CEOs, Robert Gantz and David Schroeder. They will walk you through our progress as we're successfully executing our strategy at 9:45 AM CET. Following
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