Zalando Unveils AI Shopping Agent as Third-Quarter Margin Misses Forecasts

what happened

Reuters reports that Zalando, Europe's leading online fashion retailer, introduced its first AI shopping agent on Tuesday. The move comes as investors worry that artificial intelligence may upend online retail. Earlier the company had posted a third-quarter gross margin of 38.7%, below what the market expected, and its shares slid 5% in early trading.

Analysts at Jefferies and JPMorgan linked the margin shortfall partly to spending on investments. JPMorgan also flagged lasting structural pressure from so-called agentic commerce, where autonomous agents handle the whole buying process on a shopper's behalf.

Zalando plans to roll out Zalando Extended, a platform where app users can buy goods from other online stores through AI agents, starting with a pilot alongside Westwing. Revenue rose 5.1% year on year to €3.17 billion, slightly above the €3.15 billion analysts expected, while gross merchandise value climbed 7.5% to €4.54 billion.

why it matters

For investors the report pairs a weaker profitability signal with a longer-term question about AI-driven competition. Revenue came in slightly ahead of forecasts, but margin pressure and the risk that AI assistants reshape how customers reach retailers leave the shares exposed to shifts in sentiment. Reactions from other retailers to agentic commerce will be worth watching.

market impact

Zalando shares: margin miss and AI competition worries weigh on the stock

• ▼Zalando shares pressure down — the margin miss and agentic commerce risks pressure the stock

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