Inditex's Sales Slump Amid Tariff Tensions and Economic Uncertainty
Inditex, owner of Zara, reported weaker-than-expected first-quarter sales due to tariff challenges and economic concerns. Despite a 6% revenue growth from May to early June, results missed projections, impacting shares by 4.6%. Inditex remains positive due to its global experience and diversified sourcing strategy.
Inditex, the parent company of Zara, faced an unexpected slowdown in sales growth for the first quarter, in part due to the unpredictable tariff landscape. The company's stock fell by 4.6% following the announcement, as global tariff tensions clouded the outlook for the fast-fashion sector.
Despite missing sales expectations, Inditex remains confident in its ability to manage through global trade challenges. Gorka Garcia-Tapia, Inditex's head of investor relations, emphasized the company's global reach and sourcing flexibility as key strengths in navigating the current environment.
The company reported a modest increase in net income and plans to stabilize its growth margins by 2025. Inditex is also exploring opportunities for its Gen Z-focused brand Lefties and plans to expand the Oysho brand, while managing currency fluctuation impacts on future sales.
(With inputs from agencies.)
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