Zalando says AI drives productivity and it expects higher profit

Core Insights - Zalando's use of artificial intelligence (AI) is enhancing business efficiency and productivity, leading to a positive profit forecast for 2026 [1] - The company announced a share buyback program of up to 300 million euros ($346 million), which contributed to a 7% increase in its share price [1] - Zalando expects adjusted EBIT for 2026 to be between 660 million and 740 million euros, up from 591 million euros in 2025 [1] Business Performance - AI-generated product images are reducing marketing costs and time, allowing Zalando to publish 70% more content [1] - An AI virtual try-on feature is helping customers select the correct size, thereby decreasing size-related returns [1] - Zalando's gross merchandise volume (GMV) is projected to grow by 12% to 17% in 2026, following a 14.7% increase to 17.56 billion euros in 2025 [1] Customer Metrics - The number of active customers rose to 62 million in 2025, up from 51.8 million in 2024 [1] - The average order value increased to 62.8 euros, compared to 61 euros the previous year [1] Strategic Developments - Zalando's software unit, Scayle, signed a deal with Levi's to manage its global e-commerce operations, which is viewed positively by analysts [1]