Zalando has reported strong financial results for 2025, with double-digit growth across revenue, gross merchandise value, and profit as the retailer accelerates its AI-driven strategy.
The Berlin-based fashion platform recorded group revenue of €12.3 billion, up 16.8 per cent year on year, while GMV rose 14.7 per cent to €17.6 billion.
Adjusted EBIT increased 15.6 per cent to €591 million, with the group maintaining a margin of 4.8 per cent.
The performance follows the integration of fashion brand About You into the business and continued investment in AI capabilities across its platform.
Co-CEO Robert Gentz said the company’s extensive data infrastructure is now giving it a significant competitive advantage.
“By supercharging that foundation with AI, we are providing customers and partners with experiences and services that seemed impossible just a few years ago while making our own operations more efficient,” he said.
AI investment driving efficiency
Zalando has rapidly scaled the use of AI across marketing, logistics, and engineering.
The company said AI-generated product content now accounts for around 90 per cent of marketing materials, cutting campaign production times from six weeks to just a few days and increasing output by 70 per cent.
In logistics, AI-driven supply chain models improved the accuracy of delivery promises by 22 percentage points, while AI coding tools boosted engineering productivity, resulting in over 20 per cent more code changes within the company’s technology teams.
Zalando is also developing AI-powered shopping experiences, including an enhanced Zalando Assistant, designed to act as a personalised digital shopping companion. The assistant now has six million users, four times more than a year ago.
The retailer is also preparing for the rise of agentic commerce through a partnership with Google’s Universal Commerce Protocol, enabling purchases directly through AI chatbots such as Gemini.
Multi-app strategy boosts customer growth
Zalando’s business-to-consumer segment continued to expand, with active customers reaching 62 million.
The company’s multi-app ecosystem, spanning the flagship Zalando app, the About You platform, and Lounge by Zalando, helped drive engagement and broaden market reach.
Meanwhile, its revamped Zalando Plus loyalty programme has expanded to 17 markets, attracting 16.8 million members and accounting for nearly half of GMV in the fourth quarter.
Retail media also performed strongly, growing 42 per cent during the year.
Confident outlook for 2026
Looking ahead, Zalando expects GMV and revenue growth of between 12 per cent and 17 per cent in 2026, with adjusted EBIT projected to reach €660 million to €740 million.
The company also expects to achieve €100 million in synergies from the About You acquisition by 2028, a year earlier than initially planned.
To return capital to investors, Zalando has announced a share buy-back programme of up to €300 million, representing roughly 5 per cent of outstanding shares, which it intends to cancel.
Chief financial officer Anna Dimitrova said the move reflects confidence in the company’s long-term performance.
“Our 2025 results prove our ability to execute,” she said. “We promised profitable growth and delivered at the high end of our guidance.”
The retailer continues to target GMV and revenue CAGR of 8 per cent to 13 per cent between 2023 and 2028, alongside a 6 per cent to 8 per cent adjusted EBIT margin by the end of the period.
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