MADRID, June 11 — Zara owner Inditex missed expectations for first-quarter sales and the start of summer trading today, heightening doubts over the fast-fashion retailer’s ability to deliver strong sales growth in an uncertain economic environment.
Fears of resurgent inflation and an economic slowdown triggered by tariffs have already dampened consumers’ enthusiasm for shopping in the United States and elsewhere.
Inditex reported a slower start to its summer sales, with currency-adjusted revenue growth of 6 per cent from May 1 to June 9, compared to analysts’ expectations of 7.3 per cent, and down from 12 per cent growth in the same period a year ago.
Revenues for its first quarter ending April 30 were €8.27 billion (RM40 billion), missing analysts’ average estimate of €8.36 billion, according to an LSEG poll.
Net income increased 0.8 per cent in the quarter, to €1.23 billion.
Inditex did not provide a reason for the weaker sales growth. In a statement, it called its performance “solid”, having labelled it “very robust” at its last results announcement in March, when annual sales were up 10.5 per cent.
Rainy weather in Spain, which accounts for 15 per cent of Inditex’s global sales, has also likely hurt its performance, according to Bernstein analysts.
With volatility in foreign exchange markets driven by trade risks, Inditex said currency fluctuations will have a bigger impact than previously expected, predicting a 3 per cent negative effect on its 2025 sales, compared with the 1 per cent it flagged in March. — Reuters
