Zara owner Inditex “optimistic” about U.S. despite tariffs

Zara owner Inditex expects to keep growing in the U.S., CEO Oscar Garcia Maceiras said on Wednesday, despite signs that U.S. tariffs and retaliation from other countries are hitting consumer demand.

At an annual press conference after reporting a slower start to first-quarter sales, Garcia Maceiras said he was "optimistic" about Inditex's second-biggest market after Spain:

"By properly executing our business model, we will continue to have a very positive evolution in the U.S. market."

The world's biggest listed fast-fashion retailer has expanded in the U.S. but still only has 97 Zara stores there, and one Massimo Dutti store - its higher-priced premium brand - which opened in Miami in November.

Inditex did not report U.S.-specific sales but said the Americas as a whole accounted for a smaller share of global sales in 2024, at 18.6%, while its share of sales in Spain increased to 15.1% and the rest of Europe increased to 50.6%.

Garcia Maceiras said Inditex sources its products from 50 countries and is well positioned to adapt to new tariffs.

Asked about the risk of tariffs boosting inflation, Garcia Maceiras said Inditex plans to keep its prices stable.

In the U.S., Zara has raised prices over the past year, according to data collected by market research firm EDITED. The average price of a Zara dress in the U.S. was $86.44 on March 1, up 22% in 12 months, and the average Zara top was $63.60, up 8%.

U.S. President Donald Trump has announced and threatened tariff increases on goods imported from an array of countries, triggering retaliation and fuelling concerns about world trade and economic growth.

Garcia Maceiras said constantly changing news was making it difficult to make long-term predictions, the latest business leader to highlight the impact of uncertainty as Trump upends U.S. trade and foreign policy.