Zara owner Inditex, which was among the first fashion retailers to raise prices in response to surging inflation, is in a strong financial position as weakening demand for clothing puts pressure on the sector to lower prices, analysts say. Inditex shares have risen around 64% over the past 12 months as the world's biggest clothing retailer successfully passed cost increases on to shoppers and reported record profit margins. But after several U.S. retailers including Macy's and Foot Locker warned of weak consumer spending, fears of an economic slowdown have come back into focus.
Zara owner Inditex, which was among the first fashion retailers to raise prices in response to surging inflation, is in a strong financial position as
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