Zara Owner Inditex Stock Jumps 7% as Strong Autumn/Winter Sales Reassure Investors
European markets opened higher on Wednesday, buoyed by fresh earnings updates, inflation data, and global trade news. The pan-European Stoxx 600 index climbed 0.5% in early trading, with most sectors and regional bourses showing gains. Among the top movers, Spanish retail giant Inditex — the parent company of Zara — surged over 7% after releasing its half-year earnings.
Inditex reported weaker-than-expected second-quarter sales, but investors were reassured by a sharp rebound in recent trading. The company highlighted that its new Autumn/Winter collections have been “very well received,” with sales between August 1 and September 7 rising 9% year-on-year in constant currency terms. Analysts at Citi described the results as showing a “meaningful acceleration” in performance, noting that momentum has strengthened significantly in the first weeks of the third quarter.
The upbeat Inditex report came alongside gains for Danish drugmaker Novo Nordisk, which saw shares rise 2.5% after announcing plans to cut about 9,000 jobs as part of a major restructuring. Investors across Europe were also watching developments in international trade, after reports that U.S. President Donald Trump had asked the European Union to impose tariffs of up to 100% on Chinese and Indian oil imports linked to Russia. The proposal adds fresh tension to global markets already strained by the ongoing war in Ukraine.
Inflation remained a central theme for investors as well. U.S. markets were bracing for key producer and consumer price index data, with economists expecting modest monthly increases that could push the annual headline CPI to 2.9%. Analysts suggest that if inflation cools in line with forecasts, the Federal Reserve may move forward with another rate cut at its meeting next week. Meanwhile, Asia-Pacific markets traded higher overnight, even as China reported a sharper-than-expected 0.4% drop in consumer prices for August.
Despite the broader uncertainty in global trade and inflation, the rally in Inditex provided a strong boost to European markets. The company’s performance underscores the resilience of consumer spending on fast fashion, even in a challenging economic environment. Investors will now be watching whether Inditex can sustain its momentum through the rest of 2025, especially as competition intensifies and global economic headwinds continue to shift.
source: cnbc