Update shared on11 Sep 2025
Fair value Increased 6.49%- The acquisition of ABOUT YOU expands Zalando’s reach and scale while bringing additional experienced leadership to the company.
- Over the medium term, Zalando is expected to improve both top-line growth and margins across its B2C and B2B businesses, supported by continued investment and synergies with ABOUT YOU.
- Although consumer demand remains subdued and fast-fashion competitors like Shein are pressuring Zalando’s business, the company is positioned better than ever to benefit from an eventual e-commerce recovery.
- The rapid adoption of AI in marketing and content operations could significantly reduce costs and lead times. However, this advantage is partly offset by the loss of an EU court case concerning online content rules, which will increase compliance costs.
- Management’s lowered guidance for 2H25 (excluding ABOUT YOU) reflects caution, but also sets the stage for an earnings beat if the acquisition delivers as planned
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