Zalando reports double-digit growth in 2025 as it accelerates investment in AI innovation
Zalando reported double-digit growth in revenue, profit and GMV (Gross Merchandise Value) for 2025, and expects further acceleration in 2026 by scaling AI innovations across its data and infrastructure platforms.
The German online retailer's GMV rose by 14.7% to €17.6 billion, revenue grew 16.8% to €12.3 billion, while currency-adjusted EBIT climbed 15.6% to €591 million.
The number of its active customers also increased to a new high of 62 million. Beyond fashion, Zalando saw 13% growth in categories like Sports, Beauty, Kids & Family and Designer.
Zalando acquisition of major European online fashion and lifestyle retailer ABOUT YOU in July 2026 contributed to the results. In its latest financial reports, the group says it has made "exceptional progress" in capturing value through its acquisition, and expects the merger to generate roughly €100 million in annual synergies by 2028. That means the company will have fully implemented the changes necessary to save that €100 million every year going forward, one year earlier than initially planned.
This acceleration is what has boosted Zalando's financial outlook and its confidence to deliver both mid-term margin expansion and strong cash generation. This is why the Group is now also planning a share buyback program of up to €300 million to return excess capital to shareholders.
"Our 2025 results prove our ability to execute: we promised profitable growth and we delivered at the high end of our guidance," said Anna Dimitrova, CFO of Zalando.
She added: "This underscores our confidence in Zalando’s future earnings power and our disciplined approach to capital allocation."
For the 2026 fiscal year, the combined group expects gross merchandise value and revenue to grow between 12% and 17% on a reported basis, and adjusted EBIT is projected to reach between €660 million and €740 million, driven by improving core operations and the accelerated delivery of savings through its acquisition of ABOUT YOU.
Zalando has also been heavily investing in AI innovations across its marketing, logistics and consumer-facing functions.
In 2025, it scaled its AI-generated product content from near zero to 90% in one year, boosting content output by 70% due to shorter campaign lead times. It also employed AI across its logistics operations, increasing delivery speed. Zalando launched its latest SS26 campaign, debuting Golden Globe-nominated English/American actress Lily Collins just this week.
In 2026, the German retailer is further looking to apply AI systems to boost customer "matchmaking" to specific products, having already seen a 13% increase in items added to bags. It has also employed its Size & Fit AI, based on real body measurements from over a million customers, to help customers choose a better size, thereby reducing size-related returns by more than 8%.
It is now also looking to evolve its Zalando Assistant into a "true personal lifestyle companion", following a fourfold increase in users to six million in 2025.
It is also linking with Google to have its fashion and lifestyle products discovered and purchased directly through AI chatbots like Gemini, a natural progression as the company says it is already the "number one referred fashion platform by conversational AIs". It is one of only two European launch partners for Google’s Universal Commerce Protocol, and sees this so-called "agentic commerce" as an emerging channel projected to capture up to 15% of all online retail by 2030.
Robert Gentz, Co-CEO of Zalando, said: “We accelerated our strategy and rolled out major innovations across B2C and B2B to deliver a strong performance in 2025. The unique data and infrastructure platform we’ve built over 17 years now gives us a massive advantage.
"We have the richest fashion-specific data in Europe, from billions of customer interactions and unparalleled brand relationships, and the continent’s leading logistics fulfilment network. By supercharging that foundation with AI, we are providing our customers and partners with experiences and services that seemed impossible just a few years ago while making our own operations more efficient.
"Our 2025 results prove our ability to execute: we promised profitable growth and we delivered at the high end of our guidance. We are bringing that same unwavering discipline to 2026. Our priority remains to drive long-term value creation, and we are now in a position where we can fund our growth and return capital."
