Zalando Share Price Drop ‘Overdone’ After BaFin Probe, Says Analyst

Zalando SE (ETR: ZAL) shares recovered modestly on Monday, rising 0.9% to EUR 25.15, after falling 6.3% on Friday following the disclosure of a regulatory review by the German financial watchdog BaFin, a sell-off that at least one analyst says went too far.

mwb Research analyst Alexander Zienkowicz maintained his Buy rating and EUR 39.00 price target on the stock, arguing that “the share price reaction is overdone” and that the investment case remains intact.

BaFin initiated a review of Zalando’s FY2025 consolidated financial statements, citing potential violations of accounting regulations related to alleged omissions in the notes concerning a related-party transaction tied to the company’s ABOUT YOU acquisition.

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Zalando characterized the matter as “purely formal and materially insignificant,” noting that all relevant information had been publicly accessible via the tender offer.

Zienkowicz stressed that the scope of the review is narrow. “The BaFin review is explicitly limited to the notes to the financial statements, it does not concern the underlying financials or the valuation of the ABOUT YOU transaction itself,” he said.

mwb Research pointed to Zalando’s Q1 2026 results as evidence that the fundamental picture remains sound, with robust top-line growth, ahead-of-schedule ABOUT YOU synergies, and continued profitable scaling in its B2B segment.

Management has confirmed FY2026 guidance of 12–17% GMV and revenue growth, with adjusted EBIT of EUR 660–740 million.

The company’s Q2 results are due Aug. 4.