Zalando Q2 Earnings Call Highlights

Zalando (ETR:ZAL) said its second-quarter results kept the institution connected way for its 2026 nett targets, though it narrowed its full-year maturation outlook to the little fractional of its anterior scope aft softer request successful sneakers weighed connected first-half performance.

Co-CEO Robert Gentz said the institution carried momentum from 2025 into the archetypal fractional of 2026, citing advancement successful its multi-app user strategy, B2B operations, and artificial-intelligence initiatives. On a reported basis, first-half gross merchandise volume, oregon GMV, roseate 21%, gross accrued 22.2%, and adjusted EBIT grew 16.1% to €270 million. On a pro forma basis, assuming ABOUT YOU had been consolidated successful the prior-year period, radical GMV maturation was successful the mid-single digits.

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"Our coagulated Q2 show confirms that we're connected way to conscionable our full-year targets," Gentz said, portion acknowledging that top-line maturation "fell a small short" of the company's ambitions due to the fact that of softer sneaker demand.

Second-Quarter Performance and Guidance

In the 2nd quarter, radical GMV accrued 4.4% connected a pro forma ground to €4.9 billion. Revenue roseate 1.1% pro forma, portion adjusted EBIT accrued 10% twelvemonth implicit twelvemonth to €205 million. The radical adjusted EBIT borderline was 6%, down from 6.5% a twelvemonth earlier, which CFO Anna Dimitrova attributed wholly to the first-time consolidation of ABOUT YOU, which presently operates astatine a little margin.

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The institution present expects reported GMV and gross maturation for 2026 successful the little fractional of its erstwhile 12% to 17% range. It narrowed adjusted EBIT guidance to betwixt €680 cardinal and €720 cardinal and said it has accrued assurance successful reaching the midpoint of that range.

Dimitrova said the outlook is supported by expected benefits from the reshaping of Zalando's logistics network, operational efficiencies, synergy transportation from the ABOUT YOU integration, and disciplined autumn/winter inventory purchasing. She added that the institution expects to stay successful the mid-single-digit GMV maturation scope successful the 3rd quarter.

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Management said the second-half top-line acceleration implied by its outlook volition beryllium partially connected measures intended to fortify retail performance. "No accounting measures. It's a existent growth," Dimitrova said successful effect to an expert question astir the gross outlook.

Sneaker Weakness and Inventory Management

Executives identified broad-based softness successful manner sneakers arsenic a cardinal origin affecting demand. Dimitrova said the sneaker concern represents a low-double-digit percent of full GMV. She said the institution did not take to propulsion much sneakers into the marketplace done higher selling spending oregon discounts, alternatively prioritizing profitable growth.