Zalando Shares Slide After German Watchdog Opens Probe into 2025 Accounts
Shares in Zalando (ZAL.F) fell in Friday morning trading after Germany's financial regulator announced a probe into the online retailer's 2025 financial results over an alleged breach of accounting rules.The German Federal Financial Supervisory Authority, or BaFin, said Friday that it initiated the audit after determining that Zalando may have failed to disclose information on a related-party transaction connected to its acquisition of About You Holding in the notes to its consolidated financial statements.The stock fell 6% in mid-morning trading in Frankfurt following the announcement.BaFin said it launched the audit on June 19, while emphasizing that the decision does not imply that the financial statements are incorrect or that material misstatements are likely to be identified during the probe.The company confirmed the same day that it received notice of BaFin's review, adding that it is in "close and constructive dialogue" with the regulator. Zalando added that the probe relates to a "purely formal and materially insignificant aspect of the notes to the financial statements."Zalando acquired rival online retailer About You in July 2025, making it a wholly owned subsidiary of the group. At the time, the combined group projected an adjusted EBIT margin of 6% to 8% in 2028.
