FRANKFURT (dpa-AFX) - Strong quarterly figures from Zalando and a surprisingly robust outlook on Thursday recouped part of the significant share price losses seen since the beginning of February. It was only at the start of March that the stock had slumped to its lowest level in around two years.

By midday, shares in the online fashion retailer rose by nearly 12 percent to 22.50 euros in a slightly weakening Dax, making it the index favorite. It easily cleared the 21-day moving average, which signals the short-term trend, but was stalled at the 50-day moving average for the medium-term trend, currently at 22.56 euros. The year-to-date loss has now narrowed to just over 11 percent.

Recently, concerns regarding potential competition from global social media networks had weighed on sentiment. In particular, the e-commerce offerings of the video platform Tiktok, which launched very successfully in the USA, had unsettled Zalando investors.

Following a strong final quarter of 2025 and, above all, a corporate target for operating profit (Ebit) in 2026 that exceeded the average analyst forecast (consensus), analysts are now predominantly more optimistic again. Even critical experts among them had anticipated a positive price reaction before the market opened.

"Consensus earnings estimates could rise (at least) in the low single-digit percentage range," expects Thomas Maul of DZ Bank, a view echoed by Citigroup analyst Monique Pollard.

Both pointed to the unexpectedly strong Gross Merchandise Volume (GMV) during the Christmas season and the fact that Zalando, based on the midpoint of its 2026 guidance range, expects a surprisingly significant acceleration in GMV growth. Furthermore, Zalando expects to reach the full synergy potential from the About You acquisition a year earlier than planned, in 2028. Both also highlighted the announced share buyback program of up to 300 million euros as a positive development.

However, analysts such as those from Deutsche Bank or JPMorgan also noted negative aspects. Deutsche Bank expert Adam Cochrane criticized the high discounts in the fourth quarter, which he believes are likely to continue, and pointed to the year-end inventory levels, which rose to more than 30 percent. "This must be addressed by management."

Meanwhile, JPMorgan analyst Georgina Johanan considers the return of capital to investors at a time when significant structural changes in the industry could be imminent in the short to medium term to be "not necessarily optimal."

Although she also expected a positive share reaction to Zalando's figures and targets, as well as its acquisition of Levi's as a B2B customer, she believes significant price gains may be short-lived. "The threat from AI-powered commerce (agentic commerce) remains and is still in its infancy." According to her, potential risks remain more visible than opportunities, which is why she expects "this topic to continue to play a role in the coming weeks and months."/ck/err/stk