Original-Research: Zalando SE (von Quirin Privatbank Kapitalmarktgeschäft): Buy

Classification of Quirin Privatbank Kapitalmarktgeschäft to Zalando SE

Company Name:	Zalando SE
ISIN:	DE000ZAL1111
Reason for the research:	Update
Recommendation:	Buy
from:	06.08.2025
Target price:	46.50
Last rating change:
Analyst:	Ralf Marinoni

Q2 figures and new FY 2025 guidance following “About You” takeover

In Q2-25, Zalando’s gross merchandise volume (GMV) saw an increase of 5.0% to EUR 4.1bn, while revenue increased 7.3% yoy to EUR 2.8bn. The adjusted EBIT reached EUR 186m, after EUR 172m last year, representing a stable margin of 6.5%. The company increased its FY 2025 outlook. We therefore confirm our Buy recommendation and the DCF-based EUR 46.50 TP that reflects long-term perspectives.

Increased FY 2025 guidance
Following the successful completion of the combination of Zalando and About You Holding SE on 11 July 2025, Zalando has acquired 91.45% of About You’s share capital. Since the completion of the transaction, About You has been consolidated into Zalando’s group financial statements. As a result, Zalando is adjusting its forecast for FY 2025 considering the consolidation of About You: Zalando now expects gross merchandise volume (GMV) of EUR 17.2bn to EUR 17.6bn. Revenue is projected to be between EUR 12.1bn and EUR 12.4bn. This represents an increase of 12% to 15% in GMV and an increase of 14% to 17% in revenue compared to FY 2024. The adjusted EBIT is expected to be between EUR 550m and EUR 600m. Zalando anticipates capex of between EUR 200m and EUR 280m.
Previously, without the consolidation of About You, Zalando had forecasted an increase in both GMV and revenue of 4% to 9%. The adjusted EBIT was expected to be in a range of EUR 530m to EUR 590m, while capex was projected to be between EUR 180m and 280m. In particular the slight increase of adj. EBIT is positive news as About You was not profitable in the last business year 2024/25 (28 February ended); at that time, reported EBIT amounted to EUR -69m, while adjusted EBIT amounted to approximately EUR -42m.

Strong balance sheet
Zalando has repaid one of its two remaining convertible bonds with a residual nominal value of EUR 400m from available cash reserves. This underscores the company's current strong liquidity position. After taking into account the acquisition of About You in July and the repayment of the convertible bond, Zalando's liquidity position amounts to around EUR 1.2bn. The equity ratio amounted to 34.3% as of 30 June, 2025.

 

You can download the research here: ZALANDO_SE_20250805k
For additional information visit our website: https://research.quirinprivatbank.de/

Contact for questions:
Quirin Privatbank AG
Institutionelles Research
Schillerstraße 20
60313 Frankfurt am Main
research@quirinprivatbank.de
https://research.quirinprivatbank.de/