Zalando grows profitably in Q3, driven by very strong B2B expansion, and continues innovating through AI with Zalando Extended

                                                                             

Zalando grows profitably in Q3, driven by very strong B2B expansion, and continues innovating through AI with Zalando Extended

• Group gross merchandise volume (GMV) grew 7.5% to 4.5 billion euros in Q3, group revenue grew 5.1% to 3.2 billion euros compared to last year
• Group adjusted EBIT rose 10.6% to 107 million euros year-on-year, with the adjusted EBIT margin expanding by 0.2 percentage points to 3.4%
• Business-to-Consumer (B2C) saw GMV increase across all three consumer apps. Partner business and retail media grew at a double-digit rate. The number of active customers reached a new high of 63.2 million, up 2.9% year-on-year
• Zalando introduces Zalando Extended, adding products from other online shops, which Zalando does not sell itself, to the platform. From 2027, Zalando's own AI agent will check out on behalf of customers, who will never have to leave the trusted Zalando app
• Business-to-Business (B2B) revenue grew almost 28% to 354 million euros. Adjusted EBIT more than doubled to 42 million euros, lifting the B2B margin to 11.9% from 7.1% a year earlier
• B2B software unit SCAYLE expanded its enterprise customer base with major deals in the US with Neighborhood Intelligence — whose portfolio includes Bed Bath & Beyond — and Rue Gilt Groupe, and in the UK with N Brown Group
• ZEOS Fulfilment secured major enterprise customers including Lascana, LC Waikiki and Champion
• Zalando confirms full-year 2026 guidance from August: GMV and revenue growth in the lower half of the 12% to 17% range and adjusted EBIT of 680 million to 720 million euros
   

Berlin, 3 November 2026 // Zalando SE ("Zalando"), Europe's leading technology platform for fashion and lifestyle, delivered another quarter of profitable growth, driven by the very strong expansion of its B2B business. The company also continued innovating through AI with Zalando Extended, bringing products that Zalando does not sell itself from other online shops onto its platform.

In the third quarter, Zalando gained business momentum. On a reported basis, group GMV and revenue grew year-on-year 7.5% and 5.1% respectively, reflecting the lapping of the ABOUT YOU inclusion. Adjusted EBIT increased 10.6% year-on-year to 107 million euros, with the adjusted EBIT margin expanding by 0.2 percentage points to 3.4%. This was supported by lower fulfilment costs, synergies from the ABOUT YOU integration, which reached mid-teens millions of euros in the quarter, and strong B2B growth.

“One year in, the ABOUT YOU integration is progressing well and we kept our momentum in delivering synergies,” said Anna Dimitrova, CFO of Zalando. “At the same time, our shift to a platform business model is accelerating, with our partner business and retail media growing at a double-digit rate and B2B revenue up almost 28%. This puts us in a strong position to create long-term value for customers, partners and shareholders.”

Zalando makes it easier to discover fashion with AI

Zalando has built unique data and infrastructure since 2008, combining fashion-specific data at European scale with a logistics network purpose-built for fashion and lifestyle. The Zalando Assistant helps customers talk through what they are looking for, in natural conversations that go far beyond a single search. More than 22 million unique users visited the Zalando Assistant this year.

Zalando also introduces Zalando Extended, which opens up significant new growth opportunities for the years ahead as AI agents create new ways to discover and buy products. It adds products from other online shops, which Zalando does not sell itself, to the Zalando platform. Customers will never have to leave the trusted Zalando app, as its own AI agent will securely buy these products on their behalf. Partner shops benefit too: because the AI agent does the work, they reach Zalando's customers and gain new sales without complex technical integration or changes to their logistics. In addition, they will be able to advertise their products on Zalando through its retail media business, creating an additional revenue stream for Zalando.

It also takes Zalando's platform a step further. Starting with complex categories such as bulky home goods, it will, over time, open up an ever-growing range of products from shops across the internet, all in the secure environment of the Zalando app. Westwing, Europe's number one premium destination for home and living, is the first pilot partner. The cooperation started this year, and from 2027, Zalando’s own AI agent will be able to check out Westwing's home and living products on behalf of customers, directly in the Zalando app.

B2C: GMV increases across all three consumer apps

GMV increased across all three consumer apps, with improved growth in the Zalando app and Lounge by Zalando. Performance in the core Zalando app was driven by continued acceleration in Zalando’s partner business, along with an improvement in its retail business. In terms of category performance, Zalando saw strong growth in its fashion categories, directly benefiting from a higher partner share and driven by all types of partners on the platform. Additionally, Zalando’s lifestyle categories such as Beauty and Sports grew strongly.

Zalando’s shift to a platform business model is accelerating, with double-digit growth in partner business and retail media. The partner share increased by 2.9 percentage points to 33.6% of B2C GMV, making meaningful progress towards Zalando’s 2028 mid-term target of 40% to 50%, highlighting the shift towards a higher-margin, capital-light model. High-margin retail media revenue grew nearly 18% year-on-year, reaching 2% of B2C GMV.

Active customers reached a new high of 63.2 million, up 2.9%, reflecting a more loyal customer base across all three apps. Loyalty programme Zalando Plus now has more than 22 million members and added new partner benefits with Spotify and Duolingo. Average spend per customer increased 2.9% to 308 euros, as customers shopped across more categories.

B2B: Double-digit growth and margin expansion

Zalando’s B2B business delivered another strong quarter as more brands and retailers used its e-commerce operating system for fashion and lifestyle: ZEOS to access Zalando’s logistics network and services, Tradebyte to connect with marketplaces and sales channels, and SCAYLE to run their own online shops. B2B revenue reached 354 million euros, up almost 28% year-on-year, a further acceleration from the previous quarter. Adjusted EBIT more than doubled to 42 million euros from 20 million euros in the prior-year period, and the adjusted EBIT margin expanded to 11.9% from 7.1%.

Zalando Fulfilment Solutions sustained its strong, double-digit growth as the partner business expanded. Multi-channel fulfilment continued to grow strongly, primarily driven by major partner collaborations including the strategic partnership with NEXT and the launch with Marks & Spencer in 22 markets in August. Continued momentum across SCAYLE and Tradebyte further drove higher-margin software revenue.

SCAYLE expanded its enterprise customer base with major deals in the US with Neighborhood Intelligence — whose portfolio includes Bed Bath & Beyond, Kirkland's, and buybuy BABY — and Rue Gilt Groupe, and in the UK with N Brown Group. ZEOS Fulfilment secured major enterprise customers including Lascana, LC Waikiki and Champion.

Outlook for 2026

Zalando confirms the full-year 2026 guidance from August. On a reported basis, the company continues to expect GMV and revenue growth in the lower half of its 12% to 17% range, adjusted EBIT of 680 million to 720 million euros, capex of 240 million to 300 million euros, and a negative net working capital position.

The Q3 2026 financial report, as well as the earnings presentation for analysts and investors, is available on the Zalando Investor Relations website. Zalando will report the results for the full year 2026 on 11 March 2027.               

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Zalando at a glance

Key figures*/**     In m EUR Q3/26 Q3/25 Group GMV 4,536.7 4,218.6 Percent growth  7.5 %  21.8 % Group revenue 3,174.7 3,020.6 Percent growth  5.1 %  26.5 % B2C revenue 2,829.2 2,751.7 B2B revenue 354.4 277.1 Reconciliation revenue -8.9 -8.2 Adjusted group EBIT 106.5 96.3 Adjusted group EBIT margin  3.4 %  3.2 % B2C adjusted EBIT 64.4 76.6 B2B adjusted EBIT 42.2 19.6 Reconciliation adjusted EBIT -0.1 0.2 Net working capital -424.2 -141.3 Capital expenditure -61.1 -53.7 Net income -18.0 12.5

 

Key performance indicators*/***       Q3/26 Q3/25 Active customers (million) (last 12 months) 63.2 61.4 Number of orders (million) 73.8 68.5 Average orders per active customer (last 12 months) 4.9 4.9 Average basket size (EUR) (last 12 months) 63.3 61.6

* Definitions are available in the Annual Report 2025

**  Including ABOUT YOU results from the 11 July 2025 closing date onwards

*** LTM-based KPIs are calculated based on the last twelve months including ABOUT YOU for the full year, while all other KPIs consider ABOUT YOU starting on 11 July 2025.

 

About Zalando

Founded in Berlin in 2008, Zalando is the leading European technology platform for fashion and lifestyle. The Zalando group connects more than 63 million active customers with over 7,000 brands across 29 markets. Our business is built on a unique AI-powered data and infrastructure platform. For our customers, our multi-app approach - comprising Zalando, ABOUT YOU, and Lounge by Zalando - delivers an inspiring, highly personalized shopping experience, serving different customers with different needs. For our partners, we are building the operating system for e-commerce. Through ZEOS, Tradebyte, and SCAYLE, we open our logistics, software, and service capabilities to brands and retailers, enabling them to seamlessly scale their businesses across borders.

For further information, please visit: corporate.zalando.com/en

 

Contact

Media inquiries           
Sarah Syed       
Business & Financial Communications   
presse@zalando.de 

 

Investor/Analyst inquiries
Patrick Kofler 
Investor Relations
investor.relations@zalando.de