Business

Zara Owner Sees Sales Dip Amid Inflation and Global Slowdown

By Jake Beardslee · June 11, 2025

MADRID — Inditex, the Spanish parent company of fashion giant Zara, reported lower-than-expected first-quarter sales on Wednesday, raising concerns about the retailer’s ability to sustain strong growth amid global economic uncertainty.

The company posted revenues of €8.27 billion ($9.44 billion) for the quarter ending April 30, falling short of analysts’ average forecast of €8.36 billion, according to data from LSEG. The disappointing results follow a softer start to the summer shopping season, with sales rising only 6% from May 1 to June 9, a notable slowdown compared to the 12% growth seen during the same period last year.

Inditex’s struggles come amid broader fears of an economic slowdown and renewed inflation, which have already weakened consumer spending in the U.S. and other key markets. Analysts at Bernstein said cooler-than-usual weather in Spain, which represents about 15 percent of Inditex’s global sales, likely contributed to the company’s weaker performance.

The combination of external economic pressures and seasonal weather conditions may prove to be a headwind for the world’s largest fast-fashion retailer in the coming quarters.