Shares in Inditex tumbled today as the Spanish fashion giant missed quarterly revenue expectations, highlighting growing pressure from digital competitors. The Zara owner reported sales of €9.36 billion for the three months to October, falling short of the €9.51 billion forecast by analysts.
The disappointing results triggered a 6.1 per cent share price drop in Madrid trading, erasing more than €9 billion from the company’s market value. While Inditex maintained its autumn-winter collections were “very well received,” sales growth of 9 per cent between November and early December landed at the lower end of market expectations.
The world’s largest fast-fashion retailer is grappling with mounting challenges from online rivals Shein and Temu. To maintain its competitive edge, Inditex has unveiled plans to invest €900 million in logistics operations over 2025 and 2026, focusing on rapid inventory deployment and enhanced warehouse capabilities.
Despite the setback, the company’s flagship brand Zara continues its strategic initiatives, including new marketing campaigns, store expansions, and a high-profile collaboration with supermodel Kate Moss. The retailer also cited currency fluctuations, particularly a weak dollar, as impacting its financial performance.
The missed targets come at a crucial time for the industry, with competitor H&M recently issuing a profit warning amid weakening consumer demand. Despite these headwinds, Inditex maintains its annual forecasts, projecting stable gross margins while accounting for a 3 per cent currency impact on sales.
The results mark a rare stumble for the retail giant, which traces its roots to Amancio Ortega’s first Zara store in A Coruña, Spain, in 1975. The company now operates more than 7,000 stores globally, with Ortega maintaining a controlling 59.3 per cent stake in the business.
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