Latest news with #InditexSA
Business of Fashion
a day ago
- Business
- Business of Fashion
Zara Owner Inditex Posts Slowing Growth
Zara owner Inditex SA reported a muted start to the second quarter and warned that foreign-exchange fluctuations could have a greater impact on results this year than anticipated. The shares tumbled. Revenue at the world's largest listed clothing retailer rose 6% in the five weeks to June 9, excluding currency effects. That was weaker than last year's start to the summer season, the Arteixo, Spain-based retailer said on Wednesday. 'The release fails to dispel concerns on slowing growth,' analysts at Barclays wrote in a note. The company's shares fell as much as 6.4 percent in early Madrid trading. The stock is down about 4.7 percent since the start of the year. Even though current trading is tracking higher than the 4.2 percent sales growth recorded in the first quarter, the latest numbers suggest that Inditex, like its peers, is not immune to a drop in demand prompted by the global trade war. The company has fared better than many of its rivals by keeping tighter controls on inventory, enabling it to remain nimble in a fickle fashion industry, but its sales-growth rates have headed down sharply from the post-pandemic boom era. Swedish rival Hennes & Mauritz AB posted disappointing first-quarter results because of stockpiles of unsold clothing. Foreign-exchange swings are likely to be a greater-than-expected drag on revenue this year, Inditex warned. The company expects currency fluctuations to shave 3 percent off sales this year, up from 1 percent it had expected previously. The adjustment follows a notable depreciation in both the US dollar and the Mexican peso against the euro, shrinking international earnings when converted back to the company's home currency. Other retailers have also signalled the cooling effect FX swings are having with H&M citing a strong kroner as another reason for its weak first-quarter. Last month, German sneaker brand Puma AG said the effect of tariffs and currency fluctuations was challenging to manage. The global garment industry tends to be a dollar-denominated business, which can particularly affect European retailers when they translate earnings back into local currencies. Inditex first spooked the market in March when it signalled a weaker start to its fiscal year, provoking a 7.5 percent fall — the biggest single-day plunge in its shares in five years. In its first quarter ended April 30, operating profit was in line with analyst estimates, while revenue was below expectations. The retailer said costs grew 2.3 percent in the period, rising faster than the 1.5 percent increase in revenue, including currency swings. Asked about the effect of President Donald Trump's tariffs, Inditex said it would use its broad range of suppliers, including those close to home in Spain, Portugal, Turkey and Morocco to manage the situation. 'In any case, I'd say that we see growth opportunities globally, not just in one market,' said Investor Relations Director Gorka Garcia-Tapia Yturriaga on a call with analysts. Over the last few years, the company has invested in both expanding its network of stores and also on refurbishing existing outlets to ensure a better shopping experience for customers. The company plans to spend €1.8 billion ($2 billion) again this year on store improvements and technology, along with an additional €900 million to expand its logistics network. By Clara Hernanz Lizarraga Learn more: The Brewing Controversy Over the Cotton in Your T-Shirt Zara owner Inditex, the world's largest fast fashion company, is ditching the industry's biggest sustainable cotton scheme amid a deforestation scandal and a wider push to prioritise organic fibres.
Bloomberg
2 days ago
- Business
- Bloomberg
Zara-Owner Inditex Sales Rise Even as Global Economy Cools
Zara-owner Inditex SA's sales picked up in the early weeks of the second quarter, showing that a cooling global economy hasn't stopped customers from loading up on its fast-fashion products. Revenue at the world's largest listed clothing retailer, not including currency effects, rose 6% in the five weeks to June 9 and grew faster than in the first quarter. Operating profit and revenues for that period were in line with analyst estimates.
Bloomberg
12-03-2025
- Business
- Bloomberg
European Shares Rebound on Ukraine Hopes; Zealand Pharma Surges
European stocks rebounded Wednesday after four days of declines as Ukraine accepted a ceasefire proposal brokered by the US. The Stoxx Europe 600 Index was 0.6% higher by 8:15 a.m. in London, with the banks and healthcare sectors leading the gains. The retail sector was the worst performer, dragged down by Zara owner Inditex SA, which fell 7.5% after reporting slowing sales.
Bloomberg
12-03-2025
- Business
- Bloomberg
Zara Owner Inditex's Sales Slow in Early Weeks of First Quarter
Zara-owner Inditex SA's sales were off to a slower start in the first quarter of 2025, showing it's become harder to sustain the growth rates of the post-pandemic shopping-spree years. Sales in constant currency in the five weeks to March 10 grew 4%, less than the 10.5% for all of 2024, the Arteixo, Spain-based retailer said on Wednesday.
Bloomberg
28-02-2025
- Business
- Bloomberg
China's Zara Tries Going Global in Hopes of Shein-Like Success
Fast-fashion retailer Shein blazed a trail for Chinese companies in the US and European markets. Now, another China-based apparel brand wants to replicate its success. With more stores than Inditex SA's Zara and Hennes & Mauritz AB's H&M in China, and catching up to them in Southeast Asia, Guangzhou-based Urban Revivo is set to open first US flagship store in New York City's Soho Friday. It's one of 25 stores outside of China founder Leo Li has planned for this year, including two more in London, and several in Japan and the Middle East.
