Zalando (ZAL) Stock Pops 12% as Buyback and Levi’s Deal Win Over Investors

TLDR

• Zalando stock jumped over 12% after beating Q4 profit forecasts
• Full-year revenue hit €12.3 billion, up 16.8% year on year
• A €300 million share buyback was announced, equal to roughly 5% of market cap
• Active customers grew to 62 million, up from 51.8 million, boosted by the ABOUT YOU acquisition
• A new Levi Strauss e-commerce partnership was announced across the US, Canada, and Europe

Zalando had a busy Thursday. The German fashion e-commerce group dropped its full-year results, announced a €300 million buyback, and revealed a new deal with Levi Strauss — all before lunch. The stock responded by jumping more than 12%.

Zalando SE, ZAL.DE

Full-year 2025 revenue came in at €12.3 billion, up 16.8% year on year. That was fractionally below the €12.4 billion analyst consensus but close enough that investors didn’t seem to mind.

Adjusted EBIT hit €591 million, topping the €580 million consensus by 1.9%. Gross merchandise value — the total value of goods sold on the platform — climbed 14.7% to €17.6 billion, beating estimates by 0.7%.

The buyback was the headline number for many. At up to €300 million, it represents around 5% of Zalando’s market cap. The company said it will cancel the repurchased stock, funded from its own cash flow.

Barclays, which rates the stock “overweight” with a €35 price target, called the results “very solid” and said the buyback “should be well received by investors who have been pushing for capital returns.”

Active Customers Hit 62 Million

The ABOUT YOU acquisition — completed in July 2025 — continued to reshape Zalando’s numbers. Active customers rose to 62 million from 51.8 million a year earlier, a jump largely driven by the deal.

The B2B unit also put up strong numbers. Revenue grew 14.6% to €1.1 billion, with adjusted EBIT more than doubling.

On the downside, reported net income of €213 million missed estimates. That shortfall was tied to €111 million in exceptional items, including €57 million in acquisition costs and €43 million in restructuring charges.

Gross margins dipped around 170 basis points year on year in Q4, reflecting heavier promotions, loyalty program costs, and the ABOUT YOU consolidation effect.

Levi’s Deal and 2026 Outlook

Zalando’s software unit, Scayle, sealed a deal with Levi Strauss. Levi’s will use Zalando’s commerce platform across the US, Canada, and Europe — a move that expands Zalando’s B2B footprint well beyond its home market. J.P. Morgan called it “very well received by investors given the profile and scale of the client.”

For 2026, Zalando is guiding for GMV of €19.7–20.6 billion and revenue of €13.8–14.4 billion. That implies GMV and revenue growth of 12–17% on a reported basis.

Adjusted EBIT is forecast at €660–740 million, with the midpoint coming in around 3% above the €678 million analyst consensus. The company also pulled its capex-to-sales ratio target down from 3% to 2%.

Zalando confirmed medium-term GMV and revenue growth guidance of 5–10% through 2028. It also said it now expects €100 million in synergies from the ABOUT YOU deal by 2028 — a year earlier than originally forecast.

The post Zalando (ZAL) Stock Pops 12% as Buyback and Levi’s Deal Win Over Investors appeared first on CoinCentral.