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Inditex Shares Drop 7% as Sales Growth Slows in Early 2025

The Zara owner's strong 2024 financial performance is overshadowed by concerns about a weaker start to the new fiscal year and uncertain consumer sentiment.

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A shopper carrying Zara bags in California.
A staff member sorts clothes inside a clothing store of Inditex's Zara brand at a newly opened shopping mall in Beijing, China April 16, 2021. REUTERS/Tingshu Wang/File Photo
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Overview

  • Inditex reported a 10.5% increase in 2024 sales, reaching €38.6 billion, driven by strong performance across its brands and global markets.
  • Despite robust annual results, sales growth slowed to 4% from February 1 to March 10, 2025, compared to 11% growth during the same period last year.
  • Investors reacted negatively to the slowdown, with Inditex's share price falling over 7% to a seven-month low, raising concerns about consumer confidence and economic volatility.
  • The company continues to invest in logistics and store optimization, allocating €900 million annually in 2024 and 2025, while expanding into new markets like Uzbekistan and Iraq.
  • Inditex's CEO expressed confidence in the company's execution for the year ahead but acknowledged challenges such as unpredictable economic conditions and U.S. tariff uncertainties.