DOUGLAS Group vs Zalando

DOUGLAS Group reports third quarter results in line with expectations and confirms full-year guidance

Q3 sales declined 2.0% to 987.8 million euros, adjusted EBITDA margin 12.9%; full-year guidance confirmed for FY 2025/2026.

DOUGLAS Group publishes 9M FY 2025/26 Interim Statement and Results Presentation

New interim statement for the first nine months of fiscal year 2025/26, along with a results presentation and a webcast recording of the financial results.

Douglas shifts to digital after weak core markets

Douglas Group reported weaker Q3 2025/26 results as demand softened in key Western European markets and price competition intensified. April–June revenue fell 2.0% to €987.8m and adjusted EBITDA declined 19.4% to €127.5m (margin 12.9%). Nine-month revenue rose slightly (+0.5% to €3.61bn) while adjusted EBITDA fell 9.0% to €577.3m. The company confirmed its full-year guidance for 2025/26 and said it will increase its digital focus, review and rationalize its store network, expand exclusive brands and cross-channel services, and standardize group-wide structures. E‑commerce trends vary regionally (double-digit growth in parts of Southern/Central Europe and France but declines in DACHNL), Retail Media revenue grew 24%, and Click & Collect Express usage rose. Douglas plans to present a strategy update (“Let it Bloom”) in Q4 2026 emphasizing technology, e‑commerce, cross‑channel services, and a more profitable store footprint.

• Douglas Group Q3 (Apr–Jun 2025/26) revenue: €987.8 million, down 2.0%.
• Adjusted EBITDA in Q3 fell 19.4% to €127.5 million; adjusted EBITDA margin: 12.9%.
• Nine-month revenue increased 0.5% to €3.61 billion; nine-month adjusted EBITDA decreased 9.0% to €577.3 million (margin 16.0%).

Zalando Announces New Festival for Fashion, Music, Culture

Zalando is expanding its brand and entertainment business with its own festival called "Access All Areas" (AAA), scheduled for April 24-25, 2027, at Station Berlin and Tempodrom. The company expects up to 40,000 visitors and will combine live music, fashion, beauty, sport, and brand activations. British singer-songwriter RAYE is announced as the first headliner. Initially, 14 brands are participating, including adidas, Calvin Klein, Nike, Asics, Dr. Martens, lululemon, New Balance, On, Puma, Tommy Hilfiger, and Vans, as well as beauty brands Beauty of Joseon, Kérastase, and MAC. The festival will be closely tied to Zalando Plus, with members in participating markets able to receive free tickets. The exclusive presale is planned for January 2027. Zalando Plus has over 20 million members across 17 European markets. The festival is part of Zalando's strategy to position itself as an inspiration and entertainment platform, strengthening customer loyalty and offering brand partners new physical and digital touchpoints.

• Zalando announces new festival 'Access All Areas' (AAA) on April 24-25, 2027 in Berlin.
• Up to 40,000 visitors expected at Station Berlin and Tempodrom.
• RAYE announced as first headliner.

Austria's New Parcel Tax Criticized as Costs Pass to Consumers

Austria's new parcel tax, effective October 1, 2026, charges large online retailers €2 net per parcel (€2.40 incl. VAT). Amazon passes the fee directly to customers as a separate line item, while Zalando and Otto refund it on full returns. The tax targets companies with over €100 million annual parcel revenue in Austria, affecting 16 firms including Amazon, Temu, Shein, and Zalando. Critics, including the Austrian trade association and retailers, argue the tax burdens consumers and small businesses, potentially costing 2,800 jobs. Legal challenges are planned, with possible escalation to the Constitutional Court and CJEU. Proponents say the tax levels the playing field with brick-and-mortar stores and funds a VAT reduction on staple foods.

• Austria's parcel tax of €2 net (€2.40 incl. VAT) per parcel took effect October 1, 2026.
• Amazon passes the €2.40 tax directly to customers as a separate line item per order.
• The tax applies to 16 companies, including Amazon, Temu, Shein, Zalando, and Otto, with over €100M annual parcel revenue in Austria.

Zalando and ERGO Transform Video Production with Google AI

At the YouTube Festival 2026, Lounge by Zalando and ERGO showcased how they leverage Google AI to revolutionize video production. Lounge by Zalando halved its production time for the Black Friday 2025 campaign using Veo 3 and Imagen 3, reducing it from three months to 1.5 months. ERGO is piloting an 'Agentic Gen AI Marketing Engine' with Deloitte and Google, which automates the creation of localized YouTube video ads from simple inputs. The engine generates up to 50 assets per month, a 20-fold increase, and cuts production time from weeks to days. Both companies emphasize maintaining brand identity and human oversight. YouTube's higher ROI compared to linear TV (90%) and paid social (70%) drives budget shifts, according to studies by Ekimetrics and Nielsen.

• Lounge by Zalando reduced campaign production time from 3 months to 1.5 months using Google AI (Veo 3, Imagen 3).
• ERGO is piloting an 'Agentic Gen AI Marketing Engine' with Deloitte and Google to automate YouTube video creation.
• The ERGO engine can produce up to 50 video assets per month, a 20-fold increase from current levels.