Zalando Stock: About You Acquisition Reshapes Market Position

Zalando has secured over 90% of About You Holding SE's share capital through a public takeover offer valued at approximately €1.2 billion, marking a significant step in the Berlin-based online fashion retailer's expansion strategy. The acquisition is expected to be completed in summer 2025, pending regulatory approvals. Following this successful bid, Zalando intends to initiate a squeeze-out of remaining minority shareholders, either through a merger with About You or by reaching 95% ownership. Meanwhile, Zalando has projected 4-9% revenue growth for 2025 and an adjusted earnings target of €530-590 million, figures that don't yet account for the About You acquisition. Market reaction has been volatile, with Zalando's stock initially rising 3.5% before reversing course and closing down more than 5% at €32.72, reducing year-to-date gains to approximately 1% - significantly underperforming the DAX index's 16.5% increase during the same period.

Institutional Investment Shifts Amid Analyst Optimism

The online fashion retailer has recently experienced notable changes in its shareholder structure, with American asset manager BlackRock increasing its stake to 6.002%, up from 5.91% previously. Despite this vote of confidence from a major institutional investor, Zalando's stock continues to face pressure, recently declining 2.5% to €32.27 in XETRA trading. However, the current price remains substantially higher than the 52-week low of €18.43 recorded in March 2024. Analysts maintain a generally positive outlook, with an average price target of €38.36, suggesting significant upside potential from current levels, though some caution exists regarding short-term risks as the company must increase sales volume with reduced marketing expenditure.