Zalando reports profit growth as AI capabilities drive expansion

European fashion and lifestyle platform Zalando delivered profit growth and accelerated expansion in the second quarter, supported by the rollout of AI capabilities across its consumer and business operations.

Adjusted EBIT increased 10% year-on-year to €205 million, with synergies from the acquisition of fashion retailer ABOUT YOU contributing more than €10 million.

Robert Gentz, Co-CEO of Zalando, said: "Our fast-scaling AI capabilities are already delivering measurable benefits in driving both growth and efficiency across B2C and B2B.

"Innovations like our AI-powered SCAYLE STUDIOS and the upgraded Zalando Assistant are transforming how our partners operate and how our customers discover fashion."

On the consumer side, the Zalando Assistant continued its transition from a conversational tool to a more proactive shopping and lifestyle companion.

Between January and June, the company reported a 63% increase in high-value interactions. New features introduced during the period included web search for trend-based queries, deeper integration with customer care and visual product discovery through image uploads.

Zalando said its multi-app strategy supported second-quarter B2C performance. Active customers reached a record 62.5 million, up 18.3% year-on-year, driven by both the inclusion of ABOUT YOU and organic growth.

The company also reported strong B2B performance during the quarter. Through its ZEOS operating system, Zalando is expanding access to its logistics infrastructure, software and service capabilities to support brands' and retailers' e-commerce operations, both on and off the Zalando platform.

The company also highlighted the expansion of AI-driven services within its B2B offering. One example is SCAYLE STUDIOS, an AI-powered content production platform designed to reduce the time required to create fashion and lifestyle e-commerce content from weeks to minutes.

For the FY26, Zalando now expects reported revenue growth in the lower half of its previously communicated 12-17% range, in line with market expectations.

The business also narrowed its full-year adjusted EBIT guidance to between €680-720 million, compared with its previous range of €660-740 million.

Anna Dimitrova, CFO of Zalando, said: "The resilience of our profitability reflects the quality and mix of our earnings, including the shift toward our higher-margin partner business and retail media, B2B scaling, and disciplined cost management supported by AI.

"Our focus is - as always - executing our strategy, investing in the immense opportunities ahead, and delivering a strong, high-quality financial performance in 2026."