Industria de Diseno Textil SA

Inditex, the fast-fashion giant behind the Zara brand, reported a 9% increase in August sales (excluding currency effects) compared to the same month last year, despite a heatwave across its largest market, Europe, marking a stronger-than-expected start to the autumn season. In the second quarter (May-July), the company recorded sales of 11 billion euros ($12.8 billion), maintaining resilient performance amid rising energy prices due to the Iran war and weak consumer confidence. First-half gross profit rose 8.3% to 11.6 billion euros, with a gross margin of 58.7%, though analysts noted this slightly missed expectations. Anne Critchlow, an analyst at Berenberg, said, "Despite the heatwave and other factors, current performance looks very solid." Inditex also announced additional capital expenditure of 200 million euros for office renovations, on top of the 2.3 billion euros already earmarked this year for store refurbishments and logistics improvements. RBC analysts estimate that the company's annual capital expenditure will be about three times that of Swedish competitor H&M.

France on Tuesday began implementing a fee system targeting extremely cheap fast fashion, in a bid to curb the surge in low-cost clothing sold on Chinese-origin online shopping sites such as SHEIN and Temu. The measure is part of the "fast fashion law" passed in June to address environmental damage caused by overproduction, imposing fees such as 0.25 euros (about $0.30) on boxer shorts and socks, and 12 euros (about $14) on coats. The fee is capped at 50% of the product's pre-tax sale price and is calculated based on the number of items offered by a brand, their prices, and ease of repair, with plans to raise it further from 2030. France is the first among European Union countries to impose penalties on retailers based on the number of products they offer online. According to SHEIN's prospectus, as of March 31 this year, it offered over 2 million items, with about 4,700 new apparel items added daily. According to authorities, European retailers such as Zara, owned by Inditex, and H&M, which offer fewer items on their sites, are not expected to be subject to the measure. SHEIN and Temu did not respond to requests for comment. China's Ministry of Commerce has expressed that the law is discriminatory and a trade barrier, potentially violating World Trade Organization principles.

Major clothing brands including Levi Strauss & Co., Uniqlo, Primark, and Zara are expanding in-store repair services and sewing workshops to appeal to Generation Z consumers who prioritize sustainability and saving money. Levi's has created a handstitching course for high school students and offers repair and customization services at hundreds of stores worldwide. Primark has held over 730 free 'Love It For Longer' workshops across nine countries and tested in-store repairs in the U.K. Uniqlo provides repairs, sashiko mending, and embroidery in 75 of its roughly 2,500 global stores. Skeptics like Professor Kate Fletcher argue that such initiatives do little to offset the fashion industry's overproduction, while H&M Group has called for tax policies to make repair and resale commercially viable.

Major fashion brands including Zara, H&M, Lululemon, Levi's, and REI are launching their own resale platforms to sell secondhand versions of their products alongside new ones, seeking a share of a global secondhand apparel market projected to reach $393 billion by 2030. The U.S. resale market is expected to hit $78.8 billion by the end of the decade, growing nearly four times faster than overall retail clothing sales last year. H&M reported that resale represented 0.8% of its 2025 turnover, with revenue reaching SEK 1,844 million, a 31% increase from the previous year. Brands are motivated by both sustainability goals and competitive pressure, as resale has largely occurred on third-party platforms like eBay, Poshmark, Depop, and The RealReal. By operating their own marketplaces, companies aim to control the customer experience, strengthen loyalty, and capture revenue throughout a garment's life cycle.