Zalando’s Q3 2026 revenue grows 5.1% to €3.18bn, shares drop on lower margins

Revenue beats forecasts, but margins disappoint

Zalando reported a 5.1% year-on-year increase in third-quarter revenue for 2026, reaching €3.18 billion, slightly surpassing analysts’ expectations of €3.15 billion. Gross merchandise volume (GMV) grew 7.5% to €4.54 billion, while the number of active customers hit a record 63.2 million.

Despite the revenue growth, Zalando’s gross margin fell 0.9 percentage points to 38.7%, below the 39.9% analysts had projected. The company attributed the decline to targeted price investments, discounts, and the rising contribution of its lower-margin business-to-business (B2B) division. Group adjusted operating profit rose 10.6% to €106.5 million, but net income swung to a €18 million loss, compared to a €12.5 million profit in the same period last year.

AI-powered shopping tool debuts

Zalando introduced Zalando Extended, an AI-powered shopping tool that integrates products from third-party retailers into its platform. The feature allows Zalando to retain transaction fees even when products originate from external sellers. Westwing, a home goods retailer, is the first pilot partner, starting with larger items in the category.

Zalando Extended is part of a broader shift toward agentic commerce, where AI tools autonomously complete purchases on behalf of customers. Starting in 2027, Zalando’s AI agent is expected to execute transactions without redirecting users to external sites, a move that could reshape how retailers interact with platforms.

B2B services and acquisitions drive growth

Revenue from Zalando’s business services segment, which includes logistics and software for other brands, grew 27.9% to €354 million. Profit in this division more than doubled, reflecting strong demand for its B2B offerings.

The company also reported synergies from its July 2025 acquisition of German rival About You, with tens of millions of euros in savings realized during the quarter. Zalando maintained its full-year guidance for adjusted operating profit, targeting €680 million to €720 million.

Inventory and structural risks

Zalando’s sneaker clearance program helped reduce inventory levels to 18.4% of sales, down from 21.8% a year earlier. However, the company flagged structural risks in agentic commerce, citing potential challenges in maintaining control over transactions and margins as AI-driven shopping tools gain autonomy.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Zalando’s results highlight the tightrope e-commerce platforms walk as they expand beyond traditional retail. The launch of Zalando Extended signals a strategic bet on AI-driven commerce, where platforms act as intermediaries for third-party transactions. This model could appeal to founders and operators looking to monetize existing traffic without holding inventory, but the margin pressure Zalando experienced underscores the financial trade-offs.

For European startups in retail media or B2B services, Zalando’s B2B growth—27.9% revenue increase—validates the potential of offering logistics or software solutions to other brands. However, the decline in gross margin serves as a cautionary tale: scaling new revenue streams doesn’t always translate to immediate profitability. Founders should weigh the long-term value of AI integration against the near-term costs, particularly in industries where margins are already thin.

The structural risks Zalando identified in agentic commerce are also worth noting. As AI agents take on more autonomy—such as completing purchases without user redirection—platforms may face challenges in fraud prevention, customer trust, and brand alignment. This echoes broader concerns in financial services (as seen in recent actions by JPMorgan and Bank of America), where AI agents overstepping boundaries have prompted regulatory scrutiny. Retailers experimenting with AI-driven shopping tools must balance innovation with risk management.

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