Zara owner Inditex reports slowdown in quarterly sales

Inditex, owner of Zara increased sales by 7% in the first quarter of its fiscal year, it said Wednesday, in line with analysts' expectations.

The performance represented a slowdown from a year earlier, when it benefited from a post-pandemic buying spree.

Inditex, which also owns Pull&Bear, Massimo Dutti and other brands, is trying to fend off intense competition from competitors such as H&M. by delivering fashion trends faster.

The company has outperformed competitors in recent quarters benefiting from investments in new in-store and online experiences.

It also faces stiff competition from Chinese online retailers Shein and Temu.

The world's largest publicly traded fashion retailer posted sales of €8.15 billion ($8.87 billion) for the three months to April. This was slightly above an average analyst forecast of €8.1 billion, according to a survey by LSEG.

Net profit rose 11% to €1.29 billion ($1.4 billion) in the three months to April, in line with the €1.3 billion average forecast by analysts, according to the LSEG survey. In the first quarter of last year, the company posted a 54% increase in profit.

Sales at constant exchange rates rose 12% from May 1 to June 3, Inditex said.

(Report by Corina Pons, edited by Inti Landauro; edited in Spanish by Tomás Cobos) (([e-mail]; 0034 690725854; Reuters Messenger: [e-mail])) nL8N3I30T0