Zara owner Inditex unveiled a slowdown in revenue growth for the second quarter, as Donald Trump’s tariffs and a strong dollar hit its US operations.
In the Americas, including the US, its second biggest market, Inditex saw sales fall 3.8 in the first half, citing a ‘complex’ market.
The company’s investor relations director, Gorka Garcia-Tapia, told analysts the ‘complex’ comment referred to US tariffs and trade wars, as well as foreign exchange swings.
Donald Trump has implemented a 15 per cent levy on goods imported from the EU.
Inditex, which is the world’s largest fashion retailer, said second quarter sales rose to €10.08billion in the three months to the end of July.
While an improvement on the previous quarter, analysts had been expecting growth of around 3.4 per cent.
But Inditex said sales accelerated in recent weeks after the successful launch of its latest autumn and winter clothing lines. The business said its new collections had been ‘very well received’ by shoppers.
The group reported a 9 per cent rise in sales across its stores and online between 1 August and 7 September
The Spanish retail firm, which also owns the Pull & Bear and Bershka brands, revealed total sales grew by 1.6 per cent to £15.9billion in the first half, with sales rising 5.1 per cent after adjusting for currency rates.
Sales for the group’s Zara business grew slightly to £11.4billion, but represented a slowdown in growth amid pressure on consumer finances.
Oscar García Maceiras, chief executive of Inditex, said: ‘We have again achieved a solid performance in this first half of 2025, with satisfactory sales in a complex market environment and keeping strong levels of profitability.
‘The efficient execution accomplished by our teams demonstrates the strength of Inditex’s business model.’
Separately on Wednesday Primark owner Associated British Foods said the retail chain saw trading improve in recent months despite ‘consumer caution’, as its UK and stores recovered ground.
Russ Mould, investment director at AJ Bell, said Inditex was ‘navigating a challenging path.’
He added: ‘Its products are more expensive [than Primark’s], which means the goods must sparkle to convince cautious shoppers to part with their cash.
‘The difference between Inditex and Primark is that the former is more upbeat about current trading, explaining why its shares jumped on its update.
‘Both Inditex and Primark have US operations and they’re having to contend with tariffs and unfavourable foreign exchange rates.
‘Life is never easy as a retailer as there are so many things out of their control – be it the wrong type of weather, economic weakness or taxes. It currently feels like a perfect storm for the retail sector and management must be adept at spinning multiple plates.’
