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.

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.

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.