Will Zalando’s (XTRA:ZAL) AI Ambitions Reshape Its Position in the E-Commerce Landscape?

• Zalando SE participated in the World Summit AI 2025 in Amsterdam, where Alejandro Saucedo, Director of Science, Engineering & Product, delivered a presentation on October 9.
• This high-profile appearance underscores Zalando's commitment to advancing artificial intelligence in e-commerce, highlighting its efforts to leverage technology for greater personalization and operational efficiency.
• We'll explore how Zalando's prominent focus on AI innovation at this global summit could influence the company's investment narrative.

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Zalando Investment Narrative Recap

To be a Zalando shareholder, you need to believe in the company’s ability to drive profitable growth through digital innovation, especially its push into AI-powered personalization and operational efficiency. While Zalando’s appearance at the World Summit AI underscores its commitment to tech leadership, this event alone is unlikely to meaningfully shift the biggest near-term catalyst, adoption of its new AI-powered discovery feed, or mitigate persistent risks around gross margin pressure due to return rates and continued investments. Among Zalando’s recent updates, the rollout of its AI-powered discovery feed is particularly relevant. This initiative, aimed at improving user engagement and shopping frequency, directly connects with the themes highlighted at the summit and could play a key role in boosting order values, providing momentum if customer adoption is as high as hoped. In contrast, while personalization presents opportunity, investors should be aware of the ongoing challenge of margin pressure from...

Read the full narrative on Zalando (it's free!)

Zalando's outlook anticipates €15.3 billion in revenue and €545.4 million in earnings by 2028. This implies an annual revenue growth rate of 11.8% and a €274.7 million earnings increase from the current €270.7 million.

Uncover how Zalando's forecasts yield a €36.85 fair value, a 38% upside to its current price.

Exploring Other Perspectives

Eight fair value estimates from the Simply Wall St Community put Zalando’s worth between €36.85 and €65.33. While many see upside, continued gross margin pressure could influence the company’s ability to convert innovation into sustainable profit, make sure to compare how other investors interpret this risk.

Explore 8 other fair value estimates on Zalando - why the stock might be worth over 2x more than the current price!

Build Your Own Zalando Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Zalando research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Zalando research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zalando's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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