Zalando under investigation by German supervisor BaFin, shares plunge

Frankfurt - The German financial supervisor BaFin announced on Friday it has opened an investigation into Zalando over suspected accounting rule breaches. The announcement caused the online fashion giant's share price to plunge.

The Bonn-based authority stated it has “concrete indications” of possible violations of accounting standards. This led it to launch a review on June 19 of the consolidated accounts for the year 2025 and the related management report.

On the Frankfurt Stock Exchange, the shares of the Dax-listed group plunged by 7 percent in early trading.

About You acquisition at the heart of the investigation

This procedure relates in particular to information that may have been “incorrectly omitted” from the notes to Zalando's accounts. It concerns a related-party transaction in connection with last year's acquisition of its Hamburg-based rival About You for 1.1 billion euros.

The supervisor stated that it will publish its findings, whether or not it finds errors in the accounts.

Zalando stated in a separate press release on Friday that it is in “close and constructive dialogue” with the supervisor. The company added that the issue is a “purely formal matter with no material impact,” believing it has provided all necessary information regarding the acquisition of About You.

A major player in fashion e-commerce under pressure

Founded in Berlin in 2008, Zalando is one of Europe's leading online ready-to-wear retailers, with tens of millions of customers.

The acquisition of About You is intended to strengthen its position against competition from Chinese platforms Shein and Temu.

This article was translated to English using an AI tool.

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