Zalando (XTRA:ZAL): Exploring Valuation After Nordic Fulfilment Centre Transfer to PostNord TPL

Zalando (XTRA:ZAL) has transferred operations of its Nordic fulfilment centre in Brunna to PostNord TPL. This move is designed to boost delivery speed, reliability, and overall convenience for shoppers in Scandinavia.

See our latest analysis for Zalando.

While Zalando’s logistics shift could set the stage for improved customer experience in the Nordics, investors have so far seen muted momentum. The stock’s year-to-date share price return is -18.75%. Still, a three-year total shareholder return of 15.33% stands in stark contrast to a challenging longer-term picture. This suggests optimism is building more gradually after prior setbacks.

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With shares still significantly below analyst targets and a sizable intrinsic discount, the question now is whether Zalando is trading at a bargain or if the market already reflects the company’s future growth prospects.

Most Popular Narrative: 28.9% Undervalued

With Zalando's last close at €26.18 and the widely followed narrative estimating fair value at €36.85, there is a sharp difference in the outlook for this online retailer. That sets expectations for a sizable potential upside, hinging on growth and operational progress.

The acquisition and integration of ABOUT YOU, along with synergy realization in logistics, B2B/B2C cross-selling, and payments, should yield significant cost efficiencies and scale benefits from 2026 to 2029, improving net margins and group earnings.

Read the complete narrative.

Want to know how much cost-cutting and new partnerships could transform earnings? This narrative is built on bold projections that defy the market’s caution. Intrigued to learn how much future profit growth and efficiency gains are priced in? Only the full narrative reveals which forecasts justify that higher fair value.

Result: Fair Value of €36.85 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, a sluggish consumer environment or higher investment spending could quickly erode profit growth. This could cast doubt on even the most optimistic forecasts.

Find out about the key risks to this Zalando narrative.

Build Your Own Zalando Narrative

Prefer to dig into the numbers yourself and see where your own findings lead? You can shape your unique perspective in just minutes with Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Zalando.

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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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