Tariffs and Weather Spell Trouble for Zara Owner Inditex

Inditex, the parent company of Zara, missed first-quarter sales expectations due to challenging conditions, including tariffs and an economic slowdown. The fast-fashion giant reported a 6% growth in currency-adjusted revenue, falling short of the anticipated 7.3% and significantly lower than last year's 12%.

Revenues reached 8.27 billion euros, narrowly missing analysts' forecasts of 8.36 billion euros. Adverse weather in Spain and volatility in foreign exchange markets also contributed to the retailer's weaker performance. Consequently, Inditex shares decreased by 4%, making it a notable underperformer on the Stoxx 600 index.

Inditex's cautious outlook reflects broader industry struggles, mirrored by competitor H&M's similarly disappointing sales figures. Analysts view mid-single-digit growth as commendable given the volatile global economic environment. However, currency fluctuations are expected to have a more significant impact on future revenues than previously anticipated.

(With inputs from agencies.)