Even Inditex has been hit by the sales slowdown

Despite the strategic repositioning of Zara and its business siblings (Oysho, Pull&Bear, Massimo Dutti, Bershka, Stradivarius), during the first three months of 2025, the revenue of the Spanish group Inditex did not meet expectations. Sales increased by 4.2%, a sharp slowdown compared to the double-digit growth reported in previous months. Analysts had predicted a year-on-year growth of 5.6% for Inditex, but the new results show that the fashion crisis is not limited to the luxury sector. The group already seems to be on the path to recovery, with sales increasing by 6% from May 1 to June 9 compared to the same period the previous year. Meanwhile, Inditex's investments have been widespread and substantial across each of its brands: Zara has opened new stores in Athens, Cambridge, and Massachusetts, and has also unveiled the restoration of its enormous Los Angeles store (which has been compared to a shopping mall), while the other brands have also seen store improvements, especially in London and Paris. These expenses are in addition to the numerous Zara collaborations with notable creatives from the fashion industry, from Stefano Pilati to Samuel Ross.

According to the latest quarterly results, the beginning of 2025 marked a period of major spending for Inditex. Profits rose by 1.5%, while investments increased by 2.3%. As evidenced by the new openings and Zara’s repositioning in the “middle market” (between luxury and ultra-fast fashion), Inditex’s focus seems to have been the refinement of brand image. Along with the store at The Grove in Los Angeles, Zara's South Korean store in Seoul was also expanded—a market the brand has only recently entered. Furthermore, the brand recently launched a new shopping method allowing Italian, Japanese, and British consumers to have items shipped directly to their vacation destinations (so they don’t have to pack them), just in time for the start of summer. The service will also expand to France, Spain, and Turkey—an initiative that raises concerns, especially about the risk of waste if items are bought and shipped directly to the tourist destination, potentially left behind at the end of the holiday. This project is accompanied by the opening of a new logistics center in Zaragoza, Spain, and the announcement of a major change in the group’s leadership: on July 15, during the company’s annual meeting, Vice President José Arnau will step down, replaced by Roberto Cibeira, CEO of the investment company Pontegadea, which is also owned by Inditex founder Amancio Ortega.