German regulator BaFin opens probe into Zalando's 2025 accounts over About You deal disclosures

The investigation

Germany's Federal Financial Supervisory Authority (BaFin) announced on 26 June 2026 that it had launched a review of Zalando's approved consolidated financial statements for the year ended 31 December 2025 and the accompanying management report. The probe began on 19 June 2026 after the regulator identified "concrete indications" that the online fashion group had violated accounting provisions. BaFin suspects that Zalando may have improperly failed to disclose information about a transaction with a related party in the notes to the financial statements, a transaction linked to its acquisition of competitor About You.

This will happen regardless of whether errors are found in the accounting.

Background on the About You deal

Zalando announced its intention to buy Berlin-based fashion platform About You in late 2024, agreeing a deal valued at roughly 1.2 billion euros. The transaction closed in September 2025, bringing About You's operations into Zalando's full-year 2025 results. The combined entity served 62 million customers, generated revenue of 12.3 billion euros and an operating profit of 591 million euros for the year, according to company data. The European market for fashion and lifestyle is estimated at around 450 billion euros.

Zalando's response

Zalando said it is "in close contact with the authorities" and characterised the matter as a procedural issue rather than a material misstatement. In a statement, the company asserted that all relevant information about the share acquisition, including the entities involved, the transaction structure and the purchase price, had already been fully publicly accessible during the public takeover offer.

In the assessment of Zalando SE, it is a purely formal but materially insignificant aspect of the notes.

Market reaction

Shares of Zalando fell sharply in Frankfurt after the BaFin announcement. The stock, which had touched 27 euros the previous day (its highest since October 2025), dropped as much as 20 percent in early trading before stabilising at levels around 6 to 8 percent lower than Thursday's close. The decline reversed some of the recent gains that had lifted the shares, though they remain far below the all-time high of over 100 euros recorded in 2021. The broader fashion e-commerce industry continues to face pressure from Asian competition and restrained consumer spending.

Regulatory outlook

BaFin stressed that its examination does not automatically imply that the financial statements are incorrect or likely to be found incorrect. The authority is obligated to disclose any concrete leads, and it intends to publish the outcome of the review once complete. Previous BaFin probes have led to varied results: suspicions at construction group Hochtief were not confirmed last year, while an investigation into packaging producer Gerresheimer has been ongoing for some time. Should errors be found, Zalando would be required to correct the accounts. No further penalties have been disclosed.