Zalando Revenue Grew as B2B Profit Doubles

Zalando announced a 5.1% rise in revenue to €3.17 billion during the third quarter of 2026, as gross merchandise volume (GMV) expanded 7.5% to €4.54 billion. Adjusted earnings before interest and taxes (EBIT) grew 10.6% to €106.5 million, facilitating a margin improvement from 3.2% to 3.4%.

However, the firm's reported financial performance indicates a more complex trajectory. Reported unadjusted EBIT fell from €49.1 million to €13.1 million, while the group recorded a net loss of €18 million, down from a net profit of €12.5 million in the prior-year quarter.

These figures demonstrate the shifting economic dynamics of Zalando's operations following the ABOUT YOU acquisition and the expansion of business-to-business activities. While consumer commerce remains the primary driver of revenue and merchandise volume, B2B services are emerging as an increasingly vital contributor to adjusted operating results.

During the third quarter, B2B revenue rose from €277.1 million to €354.4 million, representing nearly 28% growth. Adjusted EBIT more than doubled, increasing from €19.6 million to €42.2 million, as the segment's margin expanded significantly from 7.1% to 11.9%.

The discrepancy with consumer-facing operations is significant. B2C adjusted EBIT fell from €76.6 million to €64.4 million, while the segment's margin decreased from 2.8% to 2.3%. Consequently, the group’s adjusted operating profit improvement was generated by business services rather than the consumer sector, which increased revenue but yielded less profit.

For the initial nine months of 2026, Zalando reported revenue of €9.60 billion, a 16% year-on-year increase. GMV rose 16.2% to €13.73 billion, while adjusted EBIT expanded 14.5% to €376.2 million. On a pro forma basis, assuming ABOUT YOU was consolidated previously, GMV growth was 5.4%, with revenue rising 2.6%.

This integration has influenced both expenditure and profitability levels. Despite increased adjusted operating earnings, the group's nine-month adjusted EBIT margin declined from 4.0% to 3.9%. Unadjusted EBIT fell from €215.8 million to €44.5 million, and the group recorded a net loss of €31.8 million, versus a 2025 profit of €119 million.

Expenses related to acquisitions reached €74.5 million, whereas equity-settled share-based payment costs amounted to €78.5 million. Restructuring expenditures during the third quarter alone totaled €58.1 million. The nine-month financial outcome was also negative at €54.7 million. Zalando ascribed this primarily to diminished interest income following the cash reserve reduction associated with the ABOUT YOU purchase, financial instrument valuations, and currency fluctuations, especially those regarding the US dollar.

Despite the reported net loss and restructuring costs, Zalando reaffirmed its financial guidance for 2026, originally issued in August. The firm anticipates reported GMV and revenue growth within the lower half of its 12% to 17% range. Full-year adjusted EBIT is projected between €680 million and €720 million, with capital expenditure reaching €240 million to €300 million. Zalando also expects a negative net working capital position to persist.