Zalando SE

Zalando's past five years trace a round-trip from pandemic darling to pressured platform, followed by an ongoing, still-fragile recovery that leaves the stock recently in the high-teens to low-20s in euros, now at 20.69 as of February 22, 2026. Over this period, the narrative has shifted from high-growth e-commerce winner to margin-squeezed "problem child," and more recently to a cautious turnaround and efficiency story.

2020–2021: Pandemic boom and peak optimism

In 2020, Zalando benefited heavily from lockdown-driven online fashion demand, growing revenues close to 30% year on year and expanding EBITDA and EBIT, which reinforced its image as a structural e-commerce winner in Europe. Investor perception centered on Zalando as a scalable platform with strong network effects, and the stock climbed sharply into early 2021.

In 2021, revenues continued to grow double-digit, but growth began normalizing as economies reopened and stimulus faded. The stock nevertheless pushed to all-time highs around €105–€125 in the first half of 2021, as investors still priced it as a high-growth compounder with long runway and limited competitive threat from offline retail.

Technically, 2020 through early 2021 was dominated by a strong, low-volatility uptrend with successive higher highs and shallow pullbacks. Momentum peaked around mid-2021, with price extended far above prior multi-year ranges and sentiment clearly euphoric.

2022: Post-COVID hangover and sharp derating

By 2022, growth had stalled: full-year net sales were flat year on year, EBITDA dropped nearly 30%, and EBIT fell roughly 60%, as inflation, logistics costs, and weaker consumer demand pressured margins. Several quarters featured weaker-than-hoped profitability and cautious commentary on demand, which triggered negative earnings revisions and shifted the narrative toward margin compression and over-earning during COVID.

Investors increasingly viewed Zalando less as a pure growth platform and more as a cyclical, inventory-heavy retailer exposed to European consumer weakness. The stock derated hard, transitioning in many discussions from "hype growth" to a potential "value trap," as the multiple compressed while earnings also fell.

On the chart, 2022 was a sustained downtrend with multiple failed bounce attempts; rallies around earnings or macro news repeatedly rolled over at lower highs. The stock broke through prior 2020 support zones and trended toward the €20s, reflecting continuous selling pressure from growth and generalist investors rotating out of e-commerce.

2023: Stabilization, restructuring, and base building

In 2023, Zalando's reported revenues slightly declined versus 2022, but EBIT and net income improved as management focused on cost control and efficiency rather than top-line growth. Guidance and commentary highlighted a "strategic reset" and more disciplined capital allocation, which began to shift the discussion from crisis to stabilization.

Investor perception tilted toward a cautious turnaround: not a growth darling anymore, but a platform trying to re-establish mid-single-digit growth with better margins. Some value-oriented and contrarian investors framed it as an out-of-favor quality asset with normalized earnings power above the current run-rate, while many others remained skeptical about structural competition and consumer headwinds.

Technically, 2023 looked more like a wide sideways range after the prior collapse, with the stock oscillating in a broad band and repeatedly failing to establish a sustained new uptrend. There were tradable rallies after better-than-feared quarters, but each one stalled below key resistance levels left over from 2022.

2024: Lows, EU platform pressure, and strategic shift

In early 2024, Zalando's share price hit new multi-year lows in the high-teens, with one recorded lowest end-of-day level around €17–€18, underscoring how far sentiment had fallen from the 2021 peak. Around the same period, the company faced regulatory pressure as EU institutions and courts confirmed Zalando could be treated as a "very large online platform" under new digital rules, adding perceived compliance and operational risk.

Operationally, however, 2024 results showed improving profitability and accelerating earnings growth off a depressed base, with net income and EBIT rebounding strongly year on year. Management's strategic shift toward platform quality, partner services, and better unit economics led some observers to describe it as a potential game-changer for European retail, reframing the stock as a restructuring and margin-recovery story rather than purely a demand play.

On the chart, 2024 combined a final washout down to the lows with subsequent base building and the start of a new, still tentative uptrend from sub-€20 levels. Breaks above prior resistance zones signaled that forced selling and capitulation may have largely played out, although the stock remained well below its pre-2022 ranges.

2025–early 2026: Earnings recovery, platform refresh, and cautious rerating

In 2025, Zalando delivered stronger revenue growth and rising profits, with forecasts indicating mid-teens top-line growth and a meaningful jump in EBITDA and EBIT versus 2024. Quarterly reports showed beats or in-line results on both revenues and EPS, including Q2 2025 where net income surged and revenue slightly exceeded expectations, reinforcing confidence that the margin reset was bearing fruit.

The company rolled out AI-driven features and platform enhancements and communicated a more focused growth strategy, which helped refresh the narrative from pure restructuring toward a technology-enabled platform with renewed growth potential. At the same time, appointments like the new CFO effective 2026 signaled a continued emphasis on financial discipline and transformation at the top management level.

Market perception through late 2025 was that Zalando had moved into a "turnaround with optionality" phase: no longer priced as a hyper-growth story, but increasingly seen as a recovering platform where earnings could compound if execution holds and European macro avoids a severe downturn. Analyst consensus and technical indicators still leaned cautious, with ratings around neutral and technical signals often skewed to "sell," reflecting lingering skepticism after the long drawdown.

Technically, from the 2024 lows into 2025 the stock traced a medium-term uptrend with higher lows and multiple earnings-driven rallies, interspersed with pullbacks as it approached resistance zones created during the 2022–2023 downtrend. Volatility remained elevated, with sharp single-day moves around earnings and regulatory headlines, but the broader pattern suggested a transition from deep value and washed-out levels toward a more normalized trading range consistent with a price in the low-20s by early 2026.