Zalando's Big Growth Quarter Came With a Bigger Loss — Can the About You Bet Still Pay Off?

Shares shifted sharply as Zalando SE released Q1 2026 earnings before the bell on May 6, dropping to €19.77 — a roughly 5% decline from the prior session and extending a painful 10-day losing streak. The sell-off came despite blockbuster top-line numbers, revealing a market that is losing patience with a company spending aggressively to grow.

• Sales Surged, but the Bottom Line Spooked Investors Group GMV (the total value of goods sold on the platform) rocketed 21.7% to €4.3 billion, and revenue came in near the analyst consensus forecast of €3.53 billion . Yet Zalando posted a -31.54% EPS surprise — meaning it earned far less per share than Wall Street expected . A significant net loss in what is historically a weak quarter sent a clear signal: growth is costing more than planned.

• The About You Acquisition Is Boosting Revenue but Squeezing Profits

Zalando's €1.1 billion acquisition of About You targets €100 million in annual synergies , and it has been a major driver of customer and revenue growth — active customers surpassed 62 million (+19.7% year-over-year) . But About You is diluting B2C gross margins , and integration costs are dragging on profitability precisely when investors want proof that scale translates to earnings.

• The Stock Has Lost a Third of Its Value Since Its 52-Week High

Zalando's 52-week high is €34.20 and its low €18.79 — today's price sits dangerously close to the floor. The stock has fallen -11.17% over the past 10 sessions alone . Analysts still carry a €36.18 one-year price target , implying roughly 80% upside — but that gap is widening into a credibility problem.

• Full-Year Guidance Asks for a Lot of Faith

Management's 2026 targets call for GMV of €19.7–20.6 billion, revenue of €13.8–14.4 billion, and adjusted operating profit (EBIT) of €660–740 million . Hitting the profit target after a Q1 net loss means margins must accelerate dramatically over the next three quarters. Analysts had expected Q1 adjusted operating profit of roughly €63.8 million — any miss on that figure makes the full-year math even harder. For shareholders, the question is stark: is Zalando building Europe's dominant fashion platform, or just buying growth it can't afford?