Zalando’s shares plummet in Frankfurt following BaFin’s investigation into its 2025 accounts

(Il Sole 24 Ore Radiocor) - Shares in Zalando on the Frankfurt Stock Exchange in response to the investigation launched by the German financial supervisory authority BaFin into its 2025 accounts. Shares in Europe’s leading online fashion retailer fell by as much as 7%, ending the day at the bottom of the DAX 40 index and was among the worst performers on the Stoxx Europe 600. In a statement, BaFin said it had "concrete indications" of possible breaches of accounting standards by Zalando, which led it to launch, on 19 June, an audit of the consolidated financial statements for 2025 and the related management report.

The investigation aims in particular to ascertain whether information was “unduly omitted” from the notes to Zalando’s financial statements in relation to a related-party transaction that took place during last year’s acquisition of its competitor About You for €1.1 billion. BaFin has stated that it will publish the results of the audit, regardless of whether or not errors are found in the financial statements. In a press release, Zalando stated that it is in “close and constructive dialogue” with the authority and added that the matter concerns “a purely formal issue with no material impact”, reiterating that it had provided all the necessary information in relation to the acquisition of About You.

Founded in Berlin in 2008, Zalando aims to counter competition from the Chinese platforms Shein and Temu through its acquisition of About You. The group closed 2025 with a gross merchandise volume of €17.6 billion, turnover of €12.3 billion, an EBIT of €591 million and 62 million active customers. In the first quarter of 2026, gross merchandise volume grew by 6% on a pro-forma basis and by 21.7% on a reported basis to €4.3 billion, whilst revenue increased by 3.4% on a pro-forma basis and by 23.8% on a historical basis to €3 billion. Adjusted EBIT reached €65 million, up 38.7% year-on-year.