Inditex sales growth disappoints, shares slip
By Abigail Townsend
Date: Wednesday 11 Jun 2025
(Sharecast News) - Shares in Zara-owner Inditex came under pressure on Wednesday, after second-quarter numbers from the retail giant disappointed.
Sales at the Spanish business grew 1.5% in the three months to 30 April to €8.27bn, or by 4.2% once the impact of currency fluctuations were stripped out. Analysts had been expecting sales closer to €8.36bn.
Net income improved 0.8% to €1.3bn.
Current trading also disappointed. Currency-adjusted revenues grew 6% in the period to 6 June, below expectations for a 7.3% uplift. It was also notably slower that the 12% growth recorded in the same period a year previously.
As at 1130 BST, Inditex's Madrid-listed shares were down 4%.
The firm, which owns Pull&Bear, Oysho and Massimo Dutti, among others, did not comment on the slower sales growth, other than to note that the spring/summer ranges had been "well received" by customers.
However, the wider retail sector is facing a number of headwinds, including a stronger euro and the White House's erratic trade and tariff policies, which in turn have dented consumer confidence.
Spanish retailers have been further rocked by one of the wettest springs on record.
Inditex now expects currency fluctuations to trim sales by 3% in the full the year, although it expects the gross margin to remain stable.
Russ Mould, investment director at AJ Bell, said: "Inditex is the Eurozone's equivalent of Next - a company that sets the gold standard for its sector. When it disappoints on trading, shockwaves are felt across the retail industry.
"If the consumer is worried about the economy, and is watching every penny, retailers are going to struggle to shift goods unless they discount hard. Inditex is guiding for stable gross margins this year, which implies it is not expecting to slash prices to shift stock.
"The same applies to unfavourable foreign exchange rates which add to near-term pressures. Currency issues typically come and go, so Inditex will probably sit tight and wait for them to pass."
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