PARIS – German e-commerce giant Zalando reported more than 20 percent growth in gross merchandise volume (GMV) and revenue in the second quarter, boosted mostly by its acquisition of former rival About You, although the headline figures masked much slower underlying growth as Europe‘s largest online fashion retailer narrowed its guidance for the second half of the year.

Group GMV rose 20.7 percent on a reported basis to 4.9 billion euros, while revenue increased 20.8 percent on a reported basis to 3.4 billion euros.

However, GMV grew just 4.4 percent and revenue 1.1 percent on a pro forma basis, which adjusts for the inclusion of About You in both reporting periods.

The company narrowed its full-year adjusted EBIT guidance and said it now expects GMV and revenue growth to come in at the lower end of its previously announced target range.

The company’s business-to-business division continued to outperform its core retail operations. B2B revenue rose 27.6 percent to 300 million euros, driven by growth in its Zeos logistics business and the inclusion of e-commerce software platform Scayle. The division generated adjusted EBIT of 40.7 million euros during the quarter.

B2C revenue increased 20.3 percent to 3.1 billion euros on a reported basis, with active customers rising to 62.5 million. Zalando also pointed to continued momentum in its retail media and partner business, areas it has identified as key drivers of future growth.

“Our fast-scaling AI capabilities are already delivering measurable benefits in driving both growth and efficiency across B2C and B2B,” said co-chief executive officer Robert Gentz. “Innovations like our AI-powered Scayle Studios and the upgraded Zalando Assistant are fundamentally transforming how our partners operate and how our customers discover fashion.”

“The resilience of our profitability reflects the quality and mix of our earnings, including the shift toward our higher-margin partner business and retail media, B2B scaling, and disciplined cost management supported by AI,” added chief financial officer Anna Dimitrova. “Our focus is – as always – executing our strategy, investing in the immense opportunities ahead, and delivering a strong, high-quality financial performance in 2026.”

The results were slightly below analysts’ expectations, though revenue was broadly inline with forecasts.

“Zalando offers pureplay exposure to the structural channel shift online in European fashion retailing, plus leverage potential from fulfilment and other cost efficiencies. Its recent acquisition of About You should give it more exposure to the younger fashion cohort and to Eastern Europe,” said RBC analyst Richard Chamberlain.

“We see potential for Zalando to drive a mid- to high-single digit underlying revenue [compound annual growth rate] driven by its range and logistics advantage, and as its market leading platform is attractive to other brands,” he added.