Q2 2026 Zalando SE Earnings Call Transcript
Key Points
- Zalando SE (ZLNDY) delivered solid H1 profitability with adjusted EBIT up 16% year-on-year to EUR270 million, and a 4.2% margin.
- The B2B segment showed strong momentum, with revenue up 27.6% and adjusted EBIT more than tripling to EUR41 million, driven by logistics and software growth.
- AI initiatives are gaining traction, with Scale Studios generating over EUR1 million annual revenue runway and the London Assistant seeing a 63% increase in high-value interactions.
- The partner business continues to accelerate, with GMV growing 13.4% in H1, supporting the shift to a platform-led model and increasing assortment attractiveness.
- About You integration is progressing well, with over EUR20 million in synergies delivered in H1, ahead of plan, and a growing active customer base of 62.5 million.
- The company maintains a strong cash position with EUR1.4 billion in cash and generated EUR418 million in free cash flow in Q2, enabling continued investment and shareholder returns.
- Zalando SE (ZLNDY) refined its full-year growth guidance to the lower half of the original 12-17% range due to softer demand, particularly in the sneaker category.
- Pro forma revenue growth was only 1.1% in Q2, reflecting the strategic shift to a platform model and weak retail performance, which tempers short-term revenue.
- B2C adjusted EBIT declined to EUR164.1 million from EUR173.7 million, impacted by temporary headwinds like logistics network reshaping and a strike in Belgium.
- The company faces ongoing consumer price sensitivity and cautious spending, with no immediate improvement expected in the demand environment.
- Total adjustments for 2026 are now expected to be around EUR380 million, up from the prior EUR300 million guidance, due to accelerated closures and write-downs.
- The sneaker market softness is expected to persist in the short term, and the company does not anticipate a quick turnaround in this category.
The conference will be recorded. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentation, so please dial in to state your question. So, thank you very much and let me now turn the floor over to your host, Patrick Koeffler, Director of Investor Relations.
Good morning and welcome to our Q2 2026 earnings call. Today I'm joined by our co-CEO Robert Gens and our CFO Anna Dimitrova. Robert will start with the strategic overview and our key business highlights before handing over to Anna who will walk you through the financial developments of the quarter and the outlook. Both will be available for questions afterwards. As usual this call is being recorded. The live webcast as well as the replay of the call will be available on our investor relations webpage later today. As usual. Session, we kindly ask you to limit your questions to two each, allowing for an efficient discussion. Now, over to you, Robert. The floor is yours.
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