Zalando Reports Strong 2025 Results as AI Innovation Drives Growth Into 2026

Zalando Delivers Strong Performance in 2025

European online fashion retailer Zalando reported strong financial performance for 2025, highlighting significant growth across revenue, gross merchandise volume (GMV), and profitability. Despite challenging market conditions across the global retail sector, the company achieved double-digit growth and strengthened its position in the European e-commerce market.

The company also signaled strong confidence for the coming year, stating it expects further acceleration in 2026, with artificial intelligence playing a central role in future growth.

Key Financial Highlights

According to the company’s latest results, Zalando delivered substantial increases across several performance metrics in 2025:

• Group GMV: €17.6 billion, up 14.7%
• Revenue: €12.3 billion, up 16.8%
• Adjusted EBIT: €591 million, up 15.6%
• Adjusted EBIT Margin: 4.8% at the group level

The company’s standalone margin also improved to 5.3%, reflecting improved operational efficiency and growth across both consumer and business platforms.

For 2026, the company expects adjusted EBIT to reach €660 million to €740 million, alongside GMV growth between 12% and 17%.

Growing Customer Base and Platform Engagement

Consumer engagement across Zalando’s digital platforms continued to grow during 2025. The company reached 62 million active customers, supported by its portfolio of apps, including Zalando, About You, and Lounge by Zalando.

Zalando’s loyalty ecosystem also expanded significantly. The revamped Plus loyalty programme is now available in 17 markets and has grown to 16.8 million members, representing nearly half of the company’s GMV in the fourth quarter of 2025.

The platform also introduced an AI-powered discovery feed, which currently attracts more than nine million weekly users, helping transform Zalando from a traditional online store into a lifestyle-focused digital platform.

AI Innovation Becomes a Core Growth Engine

Artificial intelligence has become a major pillar of Zalando’s strategy. The company has deployed AI technologies across marketing, logistics, product discovery, and customer experience.

In marketing, AI-generated product content expanded dramatically during 2025. Within a year, the company increased AI-generated campaign content from nearly zero to 90% of total marketing assets, reducing campaign creation time from six weeks to just a few days.

AI also helped increase content production by 70%, enabling faster and more dynamic marketing campaigns.

AI Transforming Logistics and Supply Chains

Advanced AI systems have also improved logistics operations at Zalando.

The company deployed machine-learning models to optimize supply chain operations, helping solve complex logistics challenges and improve delivery performance.

As a result, the accuracy of real-time delivery promises improved by 22 percentage points, enhancing customer trust and operational efficiency.

Personalized Shopping Experiences Powered by AI

Zalando is increasingly focusing on AI-driven personalization, particularly through its “personal matchmaking” technology.

This system connects customers with products, lifestyle content, and recommendations tailored to their preferences and sizing needs.

The technology has already produced measurable results:

• 13% increase in items added to shopping baskets
• 8% reduction in size-related returns through the company’s Size & Fit AI system

These improvements help create a more efficient shopping experience while reducing operational costs.

Expanding B2B Technology Services

Beyond its consumer business, Zalando continues to expand its B2B technology offerings through its Scayle commerce platform.

One notable development is a partnership with Levi Strauss & Co., where Scayle will power the global e-commerce platform for the brand’s online store.

Such collaborations demonstrate Zalando’s growing influence not only as a retailer but also as a provider of digital commerce infrastructure.

The Rise of AI-Driven Retail

Co-CEO Robert Gentz highlighted the strategic advantage the company has built over nearly two decades.

Zalando now operates one of Europe’s largest fashion-specific data ecosystems, drawing insights from billions of customer interactions, extensive brand partnerships, and an advanced logistics network.

By combining this data foundation with AI technology, the company aims to deliver more personalized shopping experiences while improving operational efficiency.

Preparing for the Future of Agentic Commerce

Zalando is also investing in emerging retail technologies such as agentic commerce, a new model where AI systems assist customers in discovering and purchasing products.

Industry projections suggest that AI-driven commerce channels could account for up to 15% of global online retail by 2030.

As part of this initiative, Zalando has become one of the European launch partners for Google’s Universal Commerce Protocol, enabling products to be discovered and purchased directly through AI assistants such as Gemini.

Conclusion

With strong financial results in 2025 and ambitious plans for 2026, Zalando is positioning itself at the forefront of AI-driven retail innovation. By combining advanced artificial intelligence with its extensive data infrastructure and logistics network, the company aims to transform online shopping into a more personalized, efficient, and engaging experience.

As AI continues to reshape the global retail landscape, Zalando’s strategy suggests the next phase of e-commerce growth will be powered by intelligent technologies, automation, and deeper customer personalization.