German e-commerce giant Zalando recorded revenue growth of 16.8% in 2025, which sparked investor enthusiasm. Despite financial successes and a new partnership with the Levi's brand, the company plans to close its branch in Erfurt.
Dynamic revenue growth
The company's revenue in 2025 grew by 16.8% thanks to acquisitions and investments in AI.
Share buyback
Zalando will allocate up to €300 million for a share buyback program, which strengthened the stock price.
Partnership with Levi's
A new strategic partnership with the global apparel brand Levi's was announced.
Closure of the Erfurt branch
Despite profits, the company is closing a logistics center in Erfurt as part of network optimization.
Zalando recorded revenue growth of 16.8% in 2025, which translated into an immediate positive reaction from investors and a jump in the company's share price. Simultaneously with the publication of financial results, the company announced the launch of a share buyback program worth up to €300 million. The improved financial condition is the result of a successful acquisition of a market competitor and the broad implementation of solutions based on artificial intelligence in sales processes. The company's management emphasized that the record results provide a solid foundation for implementing the new business strategy.
The development strategy of Zalando SE for the coming years assumes maintaining medium-term revenue growth and gross merchandise value growth at a level of around 10%. An important element of strengthening the product offering has been establishing a new, strategic partnership with the Levi's brand, which is intended to attract more customers to the platform. This partnership fits into the plan to strengthen its position as a leader in European e-commerce. The company aims to further personalize shopping experiences by using advanced algorithms to analyze user preferences. Zalando SE began operations in 2008 as an online shoe store, modeled on the American service Zappos. Over time, the company expanded its assortment to include clothing, jewelry, sunglasses, and decorative products, becoming one of the largest e-commerce platforms in Europe. Currently, the company operates in over a dozen markets, employing thousands of workers in logistics centers and technology offices.
Despite dynamic financial growth and good forecasts, the company has decided to restructure its operational network, resulting in the closure of a logistics branch in German Erfurt. The liquidation of this large center has caused significant concern among the workforce and local authorities, especially in light of announced job cuts. Company representatives argue that this move is necessary to maintain cost efficiency and optimize delivery processes in the region. The decision to wind down operations in Erfurt coincides with the pursuit of increasing the profitability of the entire group in the coming quarters. 300 (mln euro) — maximum budget for the announced share buyback