Zalando Q3 revenue slightly beats estimates on B2B expansion

Zalando SE

Tue 06:09

Overview
Germany fashion e-commerce firm's Q3 revenue rose 5%, slightly beating analyst expectations
Adjusted EBIT for Q3 rose 11% yr/yr, driven by B2B expansion and cost synergies
Company confirmed full-year 2026 guidance for GMV, revenue growth and adjusted EBIT

Outlook
Zalando confirms 2026 GMV and revenue growth in lower half of 12%-17% range
Company expects 2026 adjusted EBIT of EUR 680 mln to EUR 720 mln
Zalando sees 2026 capex at EUR 240 mln to EUR 300 mln and negative net working capital

Result Drivers
B2B EXPANSION - Co said strong B2B growth, including nearly 28% revenue increase and margin expansion, was a key driver of Q3 results
ABOUT YOU SYNERGIES - Co said cost synergies from ABOUT YOU integration supported adjusted EBIT growth
PLATFORM SHIFT - Co said shift to platform business model, with double-digit growth in partner business and retail media, contributed to results

Company press release: ID:nEQ1kwDPka

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
EUR 3.17 bln
EUR 3.15 bln (6 Analysts)
Q3 Net Loss
 
EUR 18 mln
 
Q3 Adjusted EBIT
 
EUR 106.50 mln
 
Q3 Adjusted EBIT Margin
 
3.40%
 
Q3 GMV
 
EUR 4.54 bln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Zalando SE is €35.00, about 29.7% above its November 2 closing price of €26.99
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)