Poor results at Puma and Zara owner fuel fears of slowing US consumer demand
Unexpectedly poor results from the sports brand Puma and the fashion group Inditex, which owns Zara, have fuelled fears about slowing consumer appetite in the US amid uncertainty over Donald Trump’s tariffs.Shares in Puma dived by more than a fifth as the company warned that sales growth this year would be slower than hoped as “geopolitical tensions and macroeconomic challenges will continue, especially trade disputes and currency volatility, which is expected to weigh on consumer sentiment and demand”.Piral Dadhania, a retail analyst at the Royal Bank of Canada (RBC), said: “There are some concerns around brand heat, increasing competition and North America distribution.”Inditex shares were down by 8% on Wednesday as the company said underlying sales grew by 4% in the five weeks to 10 March, well behind analysts’ expectations, and slower than the 10.5% increase rung up for the year to 31 January.
The company indicated it was not concerned about this short period of tough trading, which was set against strong growth in the same period a year before, and pointed to an increase in growth to 7% in the most recent week.One analyst, who declined to be named, said the slowdown was likely to be down largely to poor weather in Europe in January.Inditex’s annual figures indicated a weakening of trade in the Americas compared with other markets, which some analysts suggested could be linked to uncertainty among US and Mexican consumers amid the Trump regime’s indecision over tariffs.Richard Chamberlain, another retail analyst at RBC, said there appeared to be a “small underlying slowdown” in the US, where Inditex has about 100 stores and sells online, making it the group’s second largest market after Spain.“We think the consumer outlook has become more challenging,” he said.
Ignacio Fernández, the finance director of Inditex, pointed to currency weaknesses in Brazil and Mexico that he said had been offset by “strong dollar sales”.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionOscar García Maceiras, the chief executive of Inditex, said: “The current environment is difficult to predict in terms of tariffs.Of course, we are continuously monitoring the situation.”He said Inditex felt it was in a very good position “due to our levels of geographical diversification in terms of sourcing and sales”.He added that Inditex’s experience in many markets meant it was used to dealing with different tariff regimes.
García Maceiras said Inditex still expected to hold its profit margins despite the threat of US tariffs as it would benefit from its tactic of making most of its clothing in Spain, Portugal, Morocco and Turkey, which meant it had “a flexible business model with a competitive advantage”.
The fruit of flattery is tariffs, but Trump-wrangler Starmer stays circumspect | John Crace
Well, that went well, didn’t it? Weeks of finding ever more ingenious ways to flatter the US president. Extolling the brilliance of Donald Trump being able to tie his own shoelaces. “That’s incredible, Mr President. No one has ever managed to do that so beautifully.” No chance for flattery has been passed up
Farage feuds won’t faze Reform followers | Letters
Your editorial (10 March) makes the same old mistake with the assumption that Nigel Farage is damaging the Reform brand. The party’s followers don’t care, don’t read critical analysis of his behaviour, won’t even know about the spat with Rupert Lowe and aren’t swayed by unseemly behaviour or arguing in public. It’s all perfectly acceptable, even normal, for them. They just need to know someone backs their argument that foreigners are the reason for their woes. Their undying passion for the Farage cause will only get stronger
UK politics: UK expels Russian diplomat and says Moscow is seeking closure of British embassy in city – as it happened
Britain said it would revoke accreditation for a Russian diplomat in response to a similar move by Russia earlier this week against British diplomats.A government spokesperson said in a statement that Russia’s accusations made against the British diplomats were “entirely false” and “fabricated in order to justify their increasing harassment of UK diplomats”.A Foreign Office spokesperson said:During the past twelve months, Russia has pursued an increasingly aggressive and coordinated campaign of harassment against British diplomats, pumping out malicious and completely baseless accusations about their work.Russia’s expulsion this week of a British diplomat and diplomatic spouse is yet another escalation.The accusations made against these individuals are entirely false, fabricated in order to justify their increasing harassment of UK diplomats
Peers working for City firms dominate Lords panel scrutinising financial sector
Peers working for big City firms including Santander, Secure Trust Bank and the London Stock Exchange are sitting on a new Lords committee scrutinising regulation of the financial services industry, the Guardian has found.The House of Lords financial services regulation committee was formed in January last year and 10 of its 13 members have declared current or recent interests in the sector.From the start, it has been highly critical of the City regulator, the Financial Conduct Authority, despite a number of the committee members being paid by companies that are overseen by the watchdog.Established to consider the regulation of financial services in the post-Brexit era, in common with other Lords committees it has the power to investigate and ultimately influence laws and public policy by holding inquiries and summoning ministers and officials to give evidence.Its chair, Michael Forsyth, was until May last year paid a salary of £230,000 a year as chair of the UK retail bank Secure Trust Bank, which is regulated by the FCA and has 1 million customers
Nicola Sturgeon to stand down as MSP next year
Scotland’s former first minister Nicola Sturgeon has announced she is standing down as an MSP.Sturgeon, who led the Scottish National party from 2014 until her shock resignation in 2023, said she would not seek re-election in 2026, telling her Glasgow Southside constituency party members: “I have known in my heart for a while that the time is right for me to embrace different opportunities in a new chapter of my life.”In the letter, which she also posted on social media, Sturgeon – who has been a member of the Scottish parliament since its inception in 1999 and the first woman to lead her party and country – said she hoped the policies she had implemented as first minister – including the Scottish child payment, expanded early years education, investment in housing and new hospitals – had benefited people across Scotland.Sturgeon, who remains popular among many sections of the SNP, also addressed party members across the country in her social media post, telling them: “I may be leaving parliament, but I will be by your side every step of the way as we complete our journey to independence.”She added that “given the challenges facing the world today, it is more important than ever that progressive voices continue to speak up for fairness, equality and dignity for all”
As Starmer prepares to cut the number of quangos, what are they and what do they do?
Keir Starmer will this week set out plans to cut some quangos to reduce red tape and a bloated state, helping with economic growth. Politicians have embarked on similar programmes before. This is what quangos are and what they do:A quango is a quasi-autonomous non-governmental organisation, although the government calls them “arm’s length bodies” or ALBs. They oversee regulations for the government and operate independently from politicians.Everything from the running of the NHS to issuing driving licences, maintaining railways and monitoring food standards is carried out by ALBs
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