Inditex, the world’s largest fashion retailer and owner of Zara, reported a stronger start to autumn sales, helping lift its shares after a weaker-than-expected second quarter.

For the three months ending July 31, 2025, Inditex posted sales of €10.08 billion ($11.81 billion), falling short of analyst expectations of €10.26 billion, according to LSEG data.

Currency Headwinds Pressure Sales
The company said a weaker U.S. dollar—its second-largest market after Spain—was a key drag, estimating currency shifts will cut 2025 sales by 4%, up from the 3% previously forecast. A weaker dollar reduces the value of U.S. sales when converted into euros.

“Even without the currency impact, sales growth was slightly worse than we were expecting,” said Sara Herrando Deprit, analyst at Kutxabank Investment.

Outlook Improves With Autumn Uptick
Despite the Q2 miss, early indications of stronger autumn demand have reassured investors, with Inditex shares gaining in Wednesday trading.

The company continues to benefit from its fast-fashion model, efficient supply chain, and global store network, even as currency volatility weighs on reported earnings.