Zalando’s stock tumbled on the news that Germany’s financial watchdog BaFin has opened an audit of its 2025 consolidated statements. The regulator claims the online fashion retailer left out a transaction tied to its About You acquisition from the notes. Investors reacted sharply, pushing the share price down several percent in early trading. The decline erased roughly €200 million in market value, raising concerns about governance.

Analysts note the probe follows Zalando’s €1.4 billion purchase of the German competitor, completed in 2025. If BaFin confirms a breach, the company could face fines and a restatement of earnings, unsettling creditors and partners. Such a penalty would also pressure the firm’s already thin profit margins. The audit also covers the accompanying management report, widening the scope beyond pure financial figures.

With the audit pending, market participants are likely to watch Zalando’s next earnings release for any adjustments. The regulator’s findings could reshape the retailer’s balance sheet and affect its expansion plans across Europe. Analysts warn that any restatement could trigger covenant breaches and credit rating downgrades significantly. For now, the share slump reflects heightened risk perception among investors.