Overview
Germany’s financial regulator BaFin announced that it has opened an investigation into Zalando SE’s 2025 annual financial statements, focusing on whether the online fashion retailer failed to disclose information about its acquisition of the online retailer About You. The regulator indicated that evidence suggests a breach of accounting rules by omitting details of the related‑party transaction from the notes to the consolidated financial statements.
Market Reaction
Following BaFin’s announcement, Zalando’s shares dropped sharply, falling approximately 9% by 07:46 GMT in early European trading. The broader European market also retreated, with the pan‑European STOXX 600 index declining 0.38% to 637.76, although it remained on track for a weekly gain. Technology shares were under pressure as investors reacted to rising memory‑chip costs driven by strong AI‑related demand.
Regulatory Focus
BaFin stated that it is auditing Zalando’s full‑year accounts as of 31 December 2025 together with the accompanying management report. The investigation centres on the omission of the About You acquisition details from the notes to the consolidated financial statements.
Company Response
A Zalando spokesperson told the Wall Street Journal that the company had been notified of the review and maintained that all relevant information regarding the About You share acquisition had been publicly available as part of the tender‑offer process. The spokesperson described the issue as “a purely formal and materially insignificant aspect of the notes to the financial statements” and confirmed that Zalando is in close dialogue with BaFin.
Contextual Factors
The market’s broader pull‑back was also influenced by technology sector weakness, with investors weighing the implications of surging memory‑chip costs linked to heightened AI demand.