Zara owner Inditex has revealed slower sales growth(Image: PA Archive/PA Images)

Zara owner sees sales growth slow at start of pivotal Christmas shopping season

Inditex said sales in the first nine months of its year increased by 10.5% on a constant currency basis, but added that growth had slowed to 9% in the five weeks to December 9

by · The Mirror

Inditex, the parent company of Zara, has reported a slowdown in sales growth at the onset of the pivotal Christmas shopping period, despite a warm reception for its autumn and winter collections.

The Spanish fashion giant noted a 10.5% increase in constant currency sales during the first nine months of 2024, but this was below market expectations, with growth decelerating to 9% in the five weeks leading up to December 9. This is in contrast to the 14% surge in sales recorded at the same point last year. Shares in the European-listed firm took a 6% hit in Wednesday morning trading, with some analysts attributing the drop to profit-taking following the company's recent robust performance.

Inditex praised its latest ranges, saying they had been "very well received" by customers, and announced a pre-tax profit rise of 9.9% to 5.8bn euros (£4.8bn) over the nine months, managing to sidestep the cost and weather challenges that have plagued other high street names. In September, H&M issued a warning that it would fall short of its profitability goals for the year due to adverse weather impacts on sales and rising costs.

Meanwhile, Inditex boasted sales growth across all its brands, including Massimo Dutti, Pull & Bear, Bershka, and Stradivarius, over the same period. The company remains optimistic about future growth prospects, stating: "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."

It concluded with a forward-looking statement: "Prioritising these areas will drive long-term growth."