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.

Sales across all Inditex brands, which include Zara, Massimo Dutti, Stradivarius, Oysho, Pull&Bear and Bershka, grew 7.5% year on year to reach €38.6bn (£32.5bn) in the 12 months ended 31 January 2025.