Shares of Inditex (ITX), the parent company of Zara, fell over 6% following the release of quarterly sales figures that did not meet expectations. The company reported first-quarter revenue of €8.27 billion ($9.44 billion) from February 1 to April 30, slightly below analysts' forecasts of €8.39 billion. Net profit for the quarter was €1.3 billion, missing the expected €1.32 billion.
Inditex also noted a slower start to summer sales, with a 6% increase in sales at constant exchange rates from May 1 to June 9, compared to a 12% rise during the same period last year. The company owns several high street brands, including Pull & Bear, Bershka, and Massimo Dutti, and is often seen as a barometer of consumer confidence and spending patterns.
The U.S. is Inditex's second-largest market after Spain. The impact of tariffs on consumer spending remains uncertain. Inditex's Investor Relations Director, Gorka GarcÃa-Tapia Yturriaga, stated during an earnings call that the current environment is difficult to predict and the company will continue to monitor the situation closely.
