Zalando recorded a net loss of 87.6 million euros in the first quarter ended March 31, the company said, reversing a 9.9 million euro profit in the same period a year earlier. The shortfall came even as group revenue expanded significantly, underscoring the margin pressure created by higher operating costs.
Top-line performance
Group revenue for Q1 rose to 2.99 billion euros from 2.42 billion euros a year earlier. The uplift was supported by a marked increase in gross merchandise volume (GMV), which climbed nearly 22% in the quarter to 4.29 billion euros.
Cost drivers
The stronger sales and GMV were largely offset by increased expenditures tied to the integration of online retailer About You, which Zalando acquired in July 2025. Management also reported restructuring charges related to a wider consolidation of its logistics operations. Additional pressure on the bottom line came from ramped-up marketing and sales investments, with particular emphasis on direct-to-customer channels.
Underlying profitability
Despite the headline loss, Zalando's underlying operating performance showed improvement. Adjusted earnings before interest and tax rose nearly 39% year-on-year to 65 million euros, excluding the one-off items and restructuring costs noted above.
Outlook
The company maintained its targets for 2026, reaffirming expected GMV growth of 12% and revenue growth of 17%. Adjusted EBIT guidance remains in a range between 660 million and 740 million euros.
Context and implications
The results illustrate a familiar industry dynamic: robust demand and volume expansion can be accompanied by short-term cost increases when strategic integration and logistics consolidation are underway. For investors and market participants, the contrast between headline losses and improving adjusted operating metrics will be central to assessing near-term performance and the path toward the company’s 2026 financial targets.