• Inditex sales grew 9% in five weeks to December 9, the start of the traditional holiday shopping period.
• Shares fell over 7% on Wednesday off the back of the results, which missed analyst expectations.
• Analysts at Deutsche Bank called the results "disappointing" in a note to clients.

Zara's parent company, Inditex, reported Wednesday that sales grew 9% in the five weeks to December 9, compared with 14% in the same period in 2023.

Shares in the Madrid-listed fashion giant — which also owns Bershka and Massimo Dutti — dropped as much as 7% on Wednesday after it missed analyst estimates.

Sales during the start of the holiday shopping period, including Black Friday and Cyber Monday, were also lower than 10.5% growth reached in the first nine months of 2024.

"Inditex continued with a very robust operating performance due to the creativity of the teams and the strong execution of the fully integrated store and online business model," the company said in its earnings statement.

Net income rose 8.5% to €4.4 billion ($4.62 billion) in the nine-month period, falling below the €4.52 billion ($4.74 billion) forecast by analysts.

Operating income and gross margin also lagged behind estimates in the third quarter.

In a note on Wednesday morning, Deutsche Bank analysts said the results would likely be viewed as "disappointing."

"The group's impressive growth credentials look confirmed," Jefferies analysts led by James Grzinic, head of luxury and retail, said in a note to clients. "But the shares likely needed a better print to prevent some profit-taking today."

Zara was previously thriving in a post-pandemic world. As luxury retailers like LVMH — which owns Louis Vuitton and Christian Dior — and Kering — the parent company of Gucci and Saint Laurent — saw sales slow as aspirational customers became increasingly strapped for cash, Zara reaped the rewards.

Middle-income earners who were priced out of luxury brands headed to Zara instead for their fashion fix, favoring its lower price point and ongoing reputation for quality. Sales were up by 10% over the course of 2023.