Zalando's stock fell 16% to 24.57 euros in European morning trading, reflecting investor concerns after the company released its second‑quarter results. The German online retailer posted a gross merchandise volume of 4.92 billion euros, slightly below the analysts' forecast of 4.94 billion euros. Revenue was 3.42 billion euros, missing the expected 3.50 billion euros.

Adjusted earnings before interest and taxes (EBIT) came in at 204.8 million euros, under the consensus estimate of 215 million euros. The shortfall in key metrics has prompted a revision of Zalando's outlook, as the company signals modest growth expectations for the remainder of the year.

The decline followed a broader trend of cautious sentiment in the European tech and retail stocks, with several peers also trading lower. Zalando's management highlighted the impact of rising logistics costs and a competitive pricing environment on margins. They also noted an ongoing effort to streamline operations and invest in data‑driven marketing to drive higher conversion rates.

Analysts expect the company to focus on cost efficiency and customer experience to recover margins in the next quarter.