Inditex Faces Slower Growth Amid Global Uncertainty

Inditex, owner of Zara, reported slowed sales growth at the start of the year, citing global trade uncertainties. Despite challenges, CEO Oscar Garcia Maceiras expressed optimism for future growth, highlighting strong full-year performance and continued investments in logistics and store expansions.

Inditex, the parent company of Zara, reported a slower sales growth at the beginning of its fiscal year, raising concerns about sustaining its rapid recent expansion. The announcement saw the company’s shares fall by 8% as CEO Oscar Garcia Maceiras attributed the slowdown to global trade uncertainty, including geopolitical shifts and tariff changes.

Sales growth for the February 1 to March 10 period rose by just 4% in currency-neutral terms, a significant drop compared to 11% growth in the same period last year. While analysts forecast an 8.8% growth for the quarter, Inditex remains confident, pointing out its strategic diversification in sourcing and markets.

Despite a challenging environment, Inditex, which experienced a 10.5% increase in full-year sales, continues investment in technology and logistics. Plans for its global expansion include new store formats and increased market presence, aiming for a promising outlook towards 2025 with increased dividends and profitability goals.