Inditex cited no reason for slower growth, but businesses have been warning of weaker demand, especially in the U.S. as trade tensions mount.

While Zara has successfully held off competition from new players and online upstarts, the U.S. is its second largest market and tariffs have prompted trade warnings.

Shares in the Zara owner fell after it reported a slowdown in sales growth, as the rise of Chinese low-cost online platforms heats up competition in the fast-fashion industry.