BaFin investigates Zalando’s financial statements for possible violations

The German Financial Supervisory Authority (BaFin) has launched an audit of Zalando’s consolidated financial statements and the accompanying management report. There are concrete indications that the DAX-listed company has violated accounting regulations, according to a statement by the Federal Financial Supervisory Authority in Bonn and Frankfurt.

According to the statement, the potential violations are related to the About You acquisition. Zalando may have incorrectly omitted information in the notes to the consolidated financial statements regarding a transaction with a related party in connection with the acquisition of the fashion platform About You.
 
Since BaFin has publicly announced the investigation, it will inform the public of its findings, the statement continued. “This will occur regardless of whether or not the investigation uncovers accounting errors.”

Zalando states that it is in close communication with BaFin. The online fashion retailer said in a statement: “In Zalando SE’s assessment, this is a purely formal, but materially immaterial, aspect of the notes to the financial statements.” All relevant information regarding the acquisition of the About You shares was fully available to the public.