German watchdog to investigate February trades in Hugo Boss shares

German financial watchdog Bafin has launched an insider trading probe into a drop in the price of Hugo Boss shares in February, a spokeswoman for Bafin said on Friday.

Hugo Boss's stock dropped nearly 20 percent on Feb. 23, after the fashion house warned its full-year profit would decline.

Bafin looked into trade in Hugo Boss shares before and after the announcement as a matter of routine and found data that has prompted it to launch an insider trading probe, the spokeswoman said.

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"We will see whether the investigation turns up concrete evidence of insider trading," she said, confirming a report by German weekly Der Spiegel.

An insider trading probe at Bafin commonly involves the regulator asking banks for the names of people who bought or sold trades ahead of a big move in a stock price. Then it examines whether these people may have had access to insider information.

If there was suspicion of insider trading, Bafin would hand over the evidence to public prosecutors, according to the spokeswoman.

Hugo Boss was not immediately available for comment.