Why is Zalando stock sliding today?

Zalando stock fell 4.9% to trade at €25.68 after the Berlin-based online fashion platform released its third-quarter 2026 results before the open, delivering a mixed set of numbers that left investors focused squarely on the margin disappointment.

While group revenue rose 5.1% to €3.18 billion and gross merchandise volume climbed 7.5% to €4.54 billion — both ahead of analyst estimates — gross margin contracted 90 basis points year-on-year to 38.7%, well below the consensus expectation of 39.9%, as the company ramped up price investments in its consumer business.

Adding to the pressure, the bottom line swung to a net loss after tax, an outcome that caught the market off guard.

The broader market provided little cushion, with U.S. indices modestly in the red and no major German macro catalysts to offset company-specific selling pressure.

The full-year 2026 guidance was reaffirmed, but management’s signal that GMV and revenue growth would land in the lower half of the 12–17% target range reinforced caution among investors who had expected a stronger trajectory heading into the seasonally important fourth quarter.

Taken together, the combination of a gross margin miss, a surprise net loss, profit-taking after a sharp pre-earnings rally, and lingering structural concerns about AI-driven commerce disruption created a confluence of selling pressure that sent Zalando shares to a session low of €25.53 — well below their 52-week high of €30.43 — despite the company’s B2B segment continuing to fire on all cylinders with revenue surging nearly 28%.