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.

Europe’s biggest fashion retailer Inditex has seen sales growth slow in recent weeks, sending its share price down to a seven-month low and raising fears that consumer confidence is weakening. The Spanish owner of brands including Zara,