Published by Global Banking and Finance Review
Posted on September 10, 2025
By Helen Reid
LONDON (Reuters) - Zara owner Inditex reported a better start to its autumn sales on Wednesday, an encouraging sign as the world's biggest listed fast-fashion retailer grappled with what its chief executive called a "complex market environment."
Sales from August 1 to September 8, surged 9% in currency-adjusted terms compared to a year ago, picking up in pace from 5.1% growth over the first half. Shares in Inditex, which have fallen this year, gained 6% in early trading.
The start to the third quarter was an improvement after sales for the second quarter ended July 31 came in at 10.08 billion euros ($11.81 billion), below the 10.26 billion euros expected by analysts, according to an LSEG estimate.
A weaker U.S. dollar was partly to blame, and Inditex said currency changes would erode sales by 4% in 2025, more than the 3% impact it previously expected. A weaker dollar means sales in the U.S. - Inditex's second-biggest market by revenue after Spain - are worth less in euro terms.
"Even without the currency impact, sales growth was slightly worse than we were expecting," said Sara Herrando Deprit, analyst at Kutxabank Investment.
However, she added, "the second half of the year is the important one for Inditex, so it's a good sign that sales growth starts to be a bit stronger."
CEO Oscar Garcia Maceiras, in a statement, said the first-half performance was solid "in a complex market environment."
U.S. President Donald Trump has hiked tariffs on imports from a swathe of major trading partners, driving many clothing and sneaker retailers who source from factories in Asia to hike U.S. prices as they try to offset higher costs.
Shares in Inditex have declined since the start of this year as investors adjust to a deceleration after four years of double-digit annual sales growth.
The slowing in sales growth has prompted questions about the strength of demand for Zara clothing, and the extent to which it would be able to raise prices in the U.S. to protect its margins.
Net profit for the first half grew just 0.8% to 2.79 billion euros.
The Spanish company, which also owns retail brands Pull & Bear, Massimo Dutti, Bershka, Stradivarius and Oysho, has steadily gained share in the global apparel market since the COVID pandemic, according to estimates from Euromonitor, while Swedish rival H&M has struggled to grow.
Inditex has said its flexible supply chain and sourcing from factories closer to its main markets will help it adapt to U.S. tariffs.
($1 = 0.8536 euros)
(Reporting by Helen Reid; Editing by Inti Landauro, Jamie Freed and Bernadette Baum)
