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.

Shares in the Zara owner fell after it reported a slowdown in sales growth, as the rise of Chinese low-cost online platforms heats up competition in the fast-fashion industry.

Inditex cited no reason for slower growth, but businesses have been warning of weaker demand, especially in the U.S. as trade tensions mount.