Europe's leading online fashion retailer also formalized the launch of a €300m share buyback program, news that was welcomed by the market, which had only expected share repurchase of only €75m. 

In a statement released this morning, the German group, which boasts a record 63 million customers, reported a 17% jump in its annual revenue in 2025 to €12.3bn, in line with the consensus, with an adjusted operating profit (Ebit) that is up 16% to €591m over the period, a result higher than market expectations (€580m) in the latter case.

But it was primarily its Q4 that impressed investors, with revenue up 23%, adjusted Ebit of €262m compared to the €253m expected, and an operating margin of 6.4%, better than anticipated (analysts were expecting 6.2%).

According Jeffries analysts, who maintain a buy recommendation on the stock, these better-than-expected performances should strengthen investor confidence in the company.

"After the recent turbulent period marked by economic headwinds (impact of AI and soaring oil prices), this solid performance at the end of the year confirms the investment thesis that the company offers solid earnings growth and exceptional visibility on future flows," it reacted.

With AI, Zalando plans to shift into higher gear

For 2026, Zalando stated it expects an acceleration of its results, with adjusted Ebit of between €660m and €740m and revenue growth expected between 12% and 17%.

In the longer term, it confirmed its target of average annual revenue growth of 8% to 13% by 2028, accompanied by an operating margin of 6% to 8%, compared to 4.8% last year, largely thanks to synergies derived from the acquisition of the About You site.

Returning to the recent controversy surrounding the implications of AI development on the business of e-commerce players, the Berlin-based group explained that it considers agentic AI as a true growth driver, capable of allowing it to both reduce costs through logistics automation and accelerate revenue by selling more effectively to existing customers and reaching new customers elsewhere, where they begin their searches with AI.

Up 10.84%, the stock recorded the third-best performance of the Europe STOXX 600 index on Thursday morning. It still shows a decline of over 20% YTD.