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In recent weeks the fashion retailer Zara has seen a rise in sales between 1 May and 9 June as sales increased by 6% despite a slowdown in growth.
Between February and April sales increased to £7 billion and was higher by 4.2% compared to the same period last year.
Garry White, Chief Investment Commentator at Charles Stanley said, “Sales growth at Zara-owner Inditex was slightly better than expected in the first quarter, but it’s clear that the fashion retailer may face a more subdued pace of growth in 2025 compared to last year.
“While the uptick in sales is encouraging, the company is evidently feeling the effects of reduced consumer spending and a slowing global economy. These results suggest that Inditex continues to navigate a challenging retail landscape effectively, leveraging its agile supply chain and trend-responsive collections. However, currency fluctuations and broader macroeconomic uncertainty remain potential obstacles.
“The United States, Inditex’s second-largest market after Spain, was highlighted by management as a key contributor to overall sales growth. Nonetheless, the group remains exposed to shifts in consumer confidence, and the outcome of Donald Trump’s ongoing trade war could have a significant impact in the months ahead. Although the solid performance should bolster investor confidence in the group’s resilience, the more muted growth outlook may temper expectations for the remainder of the financial year.”
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