Zalando Stock: Secures 90% Stake in About You

Zalando SE has reached a significant milestone in its expansion strategy by securing over 90% of About You Holding SE's share capital through a public takeover offer, the Berlin-based online fashion retailer announced Friday. The strategic acquisition, valued at approximately €1.2 billion, is expected to be completed in summer 2025, pending regulatory approvals. Following this achievement, Zalando intends to implement a squeeze-out of remaining minority shareholders, either through a merger with About You or by reaching a 95% ownership threshold. Minority shareholders would receive appropriate cash compensation, with the exact amount to be determined later. Separately, Zalando released its 2025 forecast, projecting revenue growth between 4-9% and an adjusted earnings target of €530-590 million, figures that do not yet account for the About You acquisition's impact.

Market Reaction Shows Investor Uncertainty

The market responded with significant volatility to Zalando's announcements. The stock initially gained 3.5% in early trading before reversing course to close down more than 5% at €32.72. This decline reduced the share's year-to-date gains to approximately 1%, substantially underperforming the DAX index's 16.5% increase during the same period. Market observers attributed the negative reaction primarily to concerns about free cash flow development falling short of expectations, while the midpoint of the adjusted earnings forecast also came in below analyst consensus estimates. Despite the recent pullback, Zalando's market capitalization stands at around €9 billion, about 80% higher than last year's valuation but well below its summer 2021 peak when shares traded above €100.