Core Insights - Inditex, the parent company of Zara, has closed 132 stores since October 30, 2024, as part of a strategy to enhance its financial outlook [1][2] - The company reported a total of 5,527 locations at the end of the third quarter of 2025, down from 1,588 Zara stores a year ago to 1,528, reflecting a decrease of 60 stores [2] - Inditex has also reduced its Zara Home stores from 407 to 380, a reduction of 27 stores [2] Store Performance - The only brands within Inditex's portfolio that experienced growth were Lefties and Bershka, with Bershka increasing from 855 to 859 stores and Lefties from 203 to 213 stores between October 2024 and October 2025 [4] - Despite the closures, Inditex has opened new locations in 39 markets, including new Zara stores in Las Vegas and Charlotte, North Carolina, as well as a Zara Man store in Rome [5] Industry Context - Other retailers in the industry have faced similar challenges, with Victoria's Secret closing about 30 U.S. locations, Claire's filing for Chapter 11 bankruptcy and closing nearly 300 stores, and Macy's planning to close 150 underperforming stores by 2026 [6]

Core Viewpoint - Inditex, the owner of Zara, reported a positive start to its autumn sales, with a 9% increase in currency-adjusted sales from August 1 to September 8, indicating a recovery from earlier slower growth rates [1][2]. Sales Performance - Sales for the second quarter ending July 31 were 10.08 billion euros ($11.81 billion), falling short of the expected 10.26 billion euros [2]. - The sales growth for the first half was 5.1%, which improved to 9% in the early part of the third quarter [1][2]. Currency Impact - A weaker U.S. dollar is expected to erode sales by 4% in 2025, a revision from the previously anticipated 3% impact [3]. - The dollar's weakness affects U.S. sales, Inditex's second-largest market, making them less valuable in euro terms [3]. Market Environment - The CEO noted that the first half of the year showed solid performance despite a "complex market environment," and emphasized the importance of the second half for sales growth [4]. - Analysts have expressed concerns about the uncertain consumer environment, which poses challenges for clothing retailers [4]. Gross Margin - Inditex maintained a gross margin of 58.3% for the first half, consistent with the previous year, reflecting the company's ability to navigate a challenging market [5]. Investor Sentiment - Shares in Inditex have declined this year as investors react to a slowdown in sales growth after four years of double-digit annual increases [6]. - The slowing sales growth has raised questions about demand for Zara clothing and the company's ability to raise prices in the U.S. market [7].