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.

Zara owner Inditex on Wednesday reported a slower start to its first quarter starting February 1, raising questions around its ability to keep building on rapid recent growth, and sending its shares down more than 6% in early trading.