Zalando stock: numbers ahead – and still in the DAX.

Last Updated: 6. März 2024By

The Zalando share has not exactly shone with a good performance in recent weeks and months. The stock is currently trading at just under 19 euros, but has at least recovered somewhat from its low in mid-January – it was trading at around 16 on January 19, 2024, the lowest it has ever been (as of March 6, 2024, around 10 a.m.).

Now investors are eagerly awaiting the fresh figures for the coming week. On March 13, Zalando will present its report for the 2023 financial year as well as an outlook for the current year. Depending on how the numbers turn out, there could be price impulses in both directions. Zalando has already achieved a small milestone: the online fashion retailer will remain in the DAX for the time being and will not be replaced by Lufthansa.

Zalando remains a DAX stock In recent weeks, there has been speculation that Lufthansa shares could rise to the DAX and that Zalando’s stock could be relegated to the MDAX. Now the regular review by Deutsche Börse has shown that there will be no changes to the DAX for the time being. Therefore, despite the overall weak performance of the Zalando share, Zalando continues to be one of the 40 largest (by market value) companies in Germany.

However, the classification by Deutsche Börse has only – if at all – an indirect influence on the share price. The financial reports of the companies and the outlook for the future are definitely more important. For example, Zalando will have to measure itself against the slightly lowered sales forecast from autumn. The development of profitability in particular is likely to have an impact on the performance of the stock.

Zalando share: there are opportunities in principle The cost-cutting measures at Zalando are already having an effect and the company from Berlin expects an adjusted EBIT between 300 and 350 million euros for the 2023 financial year. If the fashion retailer reaches this range and sees further potential for 2024, this could have a positive effect on the Zalando share price.

The majority of analysts also see opportunities for the stock: the price targets vary widely, most recently UBS confirmed its neutral price target of 21 euros and Warburg Research confirmed its very optimistic price target of 45 euros. Investors should keep an eye on March 13 – after the figures are released, it should be clearer in which direction the Zalando share will move in the short term. In the long term, the potential for margins could have a positive impact on the share price.