While Zara has successfully held off competition from new players and online upstarts, the U.S. is its second largest market and tariffs have prompted trade warnings.

After years of riding a post-pandemic boom, Zara owner Inditex SA is showing signs of coming back to Earth. Sales of the world’s largest listed clothing retailer were off to a slower start in 2025, rising just 4% in the five weeks to March 10 on a constant-currency basis compared with 10.

The Zara and Massimo Dutti owner saw its turnover increase by 4 per cent between the start of February and 10 March, compared to 11 per cent growth during the same period last year.