
Europe’s biggest fashion retailer Inditex has seen sales growth slow in recent weeks, sending its share price down to a seven-month low and raising fears that consumer confidence is weakening.
The Spanish owner of brands including Zara, Beshka and Pull & Bear revealed its sales reached 38.6 billion euro (£32.5 billion) over its 2024 financial year, 10.5% higher than the previous year at constant currency.
Inditex said it showed its fashion collections were selling well among its global customers, with both online and in-store sales increasing and its Bershka and Stradivarius brands enjoying double-digit growth.
More recently, between February 1 and March 10, sales increased 4% compared with the same period last year, the fashion giant said.
The indication that a period of accelerating growth may be stalling appeared to have spooked investors, with shares in the Madrid-listed company falling by more than 7% to levels not seen since August last year.
The sentiment was rubbing off on UK stock markets with retail giants JD Sports, Next, and Primark owner AB Foods all declining on Wednesday.
Russ Mould, investment director at AJ Bell, said: “A slowdown in Inditex’s sales growth is reason to worry as it implies consumers aren’t feeling as confident with opening their wallets.
“The uncertain backdrop is creating havoc for companies across multiple industries and retail is near the top of the list.
“Inditex is one of the few retailers that act as economic bellwethers,” Mr Mould said, adding that the sales slowdown “implies that some of its customers are either worried about their finances, the economy or both”.
The chain had about 5,560 stores at the end of 2024 – fewer than the previous year, as it closed some shops and refurbished others.
It opened stores in new markets including Uzbekistan, and is set to launch in Iraq this year.
The company has been introducing new security technology into its shops, which it said was now fully operational in Zara, and will be available in Bershka and Pull & Bear this year.
It is also investing in its factories having launched a programme involving plugging 900 million euro (£758.8 million) into logistics in both 2024 and 2025.