Zara Owner Inditex Reports Slower Sales Growth, Misses Revenue Expectations

Shares in the fast-fashion giant dropped over 6% as third-quarter revenue and profit fell short of analyst forecasts despite strong holiday season sales growth.

Inditex, the parent company of Zara, reported €9.36 billion in third-quarter revenue, below analyst expectations of €9.51 billion.
Shares fell over 6% in Madrid trading, erasing more than €9 billion from the company’s market capitalization.
Sales growth slowed to 9% in the first five weeks of the holiday shopping season, compared to 14% during the same period last year.
Currency fluctuations, particularly with the Mexican peso and Brazilian real, negatively impacted third-quarter results, though the company expects this effect to ease in the fourth quarter.
Inditex is investing €900 million over two years to enhance logistics, while also focusing on sustainability initiatives and high-profile collaborations to maintain its competitive edge.