Zalando files for IPO, exceeds expectations
Zalando Strengthens Position in European Fashion Market with About You Acquisition
In a strategic move, German online fashion retailer Zalando has completed the merger with fashion retailer About You. As of July 11, 2025, About You officially belongs majority to Zalando, with the company acquiring 91.45 percent of About You's share capital [1].
The acquisition has led to a significant update in Zalando's financial forecast for the current fiscal year 2025. The gross merchandise volume (GMV) is now expected to be between €17.2 and €17.6 billion, and revenue is forecasted between €12.1 and €12.4 billion [2][4][5]. These forecasts include contributions from About You from the date of acquisition and reflect Zalando's strategy to build a leading pan-European fashion and lifestyle e-commerce ecosystem.
The Q2 2025 results show a positive impact of the merger. Q2 revenue rose 7.3% year-over-year to €2.84 billion (~$3.3 billion) [1]. Adjusted EBIT reached €185.5 million (~$215 million), maintaining a stable margin of 6.5% [1]. Zalando anticipates annual EBIT synergies of approximately €100 million beginning in 2029, with Zalando and About You continuing as distinct brands while pursuing joint value creation [1][2].
The company’s liquidity remains strong with approximately €1.2 billion in cash, despite acquisition outlay and convertible bond repayment [1]. This strong financial position demonstrates Zalando’s confidence in growth and profitability enhancement following the About You acquisition, aiming to expand its market share in Europe’s €450 billion fashion market [2].
CEO Robert Gentz is optimistic about the future, aiming "to set new standards in the digital fashion market together with About You" [1]. With this merger, Zalando sees itself in a stronger position for further growth in the European online fashion market.
Investors are advised to monitor operational and chart technical developments before considering entry. The adjusted EBIT is expected to be between €550 and €600 million [2]. Zalando's stock symbol is WKN: ZAL111.
Previous target values for EBIT were between €530 and €590 million euros for Zalando, and the initial expectations for GMV growth and revenue for 2025 were set at 4% to 9% and similar increases, respectively [3]. The integration of About You into Zalando's operations is proceeding according to plan.
[1] Zalando Press Release, Q2 2025 Results, July 2025. [2] Zalando Investor Relations, Financial Forecast 2025, July 2025. [3] Zalando Investor Relations, Annual Report 2024, December 2024. [4] About You Press Release, Merger with Zalando, July 2025. [5] About You Annual Report 2024, Excluded from Zalando's financial statements, December 2024.
The acquisition of About You by Zalando has further strengthened their position in the European business sector, particularly the fashion market. This strategic move is expected to translate into significant updates in Zalando's financial forecast for 2025, with technology playing a crucial role in enabling a seamless integration of About You into Zalando's operations.
