German regulator opens accounting probe into Zalando over About You disclosure

Zalando is facing a regulatory review in Germany over whether it properly disclosed a possible related-party element in its 2025 consolidated accounts after buying About You.

The scrutiny comes from BaFin, Germany's financial regulator, which said it has opened a review of Zalando's annual accounts and management report. According to reporting cited by multiple outlets, BaFin believes there are concrete indications that Zalando may have failed to identify a relevant company in the notes to the accounts linked to the takeover.

Zalando said it is cooperating with the regulator and described the issue as a formal matter that is not material. The company also said the transaction details were already public during the takeover process.

What BaFin is reviewing

The review focuses on Zalando's 2025 financial statements and whether a related-party disclosure should have been included in the annual report in connection with the About You acquisition.

One report said the question is whether Anders Holch Povlsen, through Heartland, was a significant shareholder in both Zalando and About You before the deal, making the disclosure treatment more sensitive. BaFin has not announced a final finding.

Timeline of the deal

Zalando announced plans to acquire About You in December 2024 and completed the transaction in July 2025.

The regulatory review became public on June 26, 2026, after coverage from the Financial Times, Welt and El País. The reports said BaFin had opened the review that day and that Zalando's shares fell sharply on the news, with one report saying the decline was more than 5% and another putting the intraday drop at as much as 9%.

Why it matters

A finding against Zalando could force changes to how it presents the About You transaction in its formal accounts and add reputational pressure after a large acquisition.

For now, the case remains a review rather than a conclusion. BaFin has said it will publish the result of its review, while Zalando says the matter is formal and immaterial.

The episode leaves open whether the issue is a technical disclosure problem or a wider accounting problem. Until BaFin finishes its review, the company's 2025 accounts have not been ruled incorrect.