But along with competition from online shoppers (web sales at Inditex made up 12 percent of total sales, versus a U.S. average of 27 percent), consumers' desire for brand-new clothing may be waning.
People are set to invest in used fashion over new clothes, according to a report published Tuesday. The second hand apparel market was worth $24 billion in the U.S. in 2018, versus $35 billion for fast-fashion, say the figures from online store thredUP and retail analytics firm GlobalData released on Tuesday.
However, by 2028 the used-fashion market is set to skyrocket in value to $64 billion in the U.S., while fast-fashion will only reach $44 billion.
H&M and Zara have both missed earnings expectations this year. H&M's quarterly profit fell 10 percent in the fourth-quarter, it said in January, and it blamed investment in its online business plus competition from Zara, Primark and ASOS. Last week, Inditex reported a 7 percent sales growth in the first five weeks of its new financial year but analysts were skeptical. "This is less than half the rate of growth reported by Inditex just a couple of years ago and we believe it is evidence that the group's growth profile is slowing sharply," Morgan Stanley said in a note at the time.