Zalando has raised its full-year guidance after completing its acquisition of rival fashion retailer About You and posting a rise in profit in the second quarter.
The Berlin-based online fashion giant saw group revenue increase 7.3% year-on-year to €2.83bn (£2.41bn) in the three months to 30 June 2025, while adjusted EBIT climbed to €185.5m (£157.7m), representing a stable 6.5% margin. Gross merchandise volume also rose 5% to €4.1bn (£3.49bn).
Zalando now expects group revenue between €12.1bn and €12.4bn (£10.3bn–£10.5bn) and adjusted EBIT of €550m to €600m (£467m–£510m) for the full year, including About You’s contribution from 11 July.
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In the business-to-consumer segment, active customers hit a new high of 52.9 million, up 6.1%, while revenue rose 6.8% to €2.58bn.
The uplift was supported by the rollout of a new AI-powered discovery feed, designed to boost personalisation and organic engagement.
Meanwhile, Zalando’s business-to-business revenue jumped 12.2% to €262m, with growth driven by its ZEOS Fulfilment services. The retailer also launched a Shopify integration to connect its logistics platform directly to independent merchants.
The company said the acquisition of About You would enable profitable growth at scale, and expects around €100m in group EBIT synergies annually from 2029.
The update follows M&S’s viral strawberry ‘sando’, which made headlines earlier this summer and sparked a VAT row over whether it should be taxed as confectionery due to its sweetened ingredients.
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