Zara owner Inditex has revealed slower sales growth at the start of its crucial Christmas shopping season, despite strong demand for its autumn and winter ranges.
The Spanish fast fashion giant reported a 10.5% rise in sales on a constant currency basis in the first nine months of 2024, but this was lower than expected in the market and the firm added that growth had slowed to 9% in the five weeks to December 9.
This compares with a 14% jump in sales at this stage a year earlier.
Shares in the European-listed firm fell 6% in Wednesday morning trading, although some of this was also thought to be a result of profit-taking after recent strong gains.
Inditex said its latest collections had been “very well received” by shoppers.
Its pre-tax profits lifted 9.9% to 5.8 billion euros (£4.8 billion) in the nine months as it shrugged off costs and weather woes that hit some high street rivals.
H&M warned in September that it would not meet its profitability target this year after a weather hit to sales and amid cost pressures.
Inditex said nine-month sales grew across all its brands, which also includes Massimo Dutti, Pull & Bear, Bershka and Stradivarius.
Inditex said it “continues to see strong growth opportunities”.
It added: “Our key priorities are to continually improve the fashion proposition, to enhance the customer experience, to increase our focus on sustainability and to preserve the talent and commitment of our people.
“Prioritising these areas will drive long-term growth.”
