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Inditex Defies Consumer Slowdown as Zara Delivers Robust Early Summer Growth

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Zara owner Inditex has reassured investors with a strong start to the summer season, reporting currency-adjusted sales growth of 11.5% in May, well above analysts’ expectations of 8%. The performance comes despite weaker consumer confidence and economic uncertainty linked to rising inflation concerns and geopolitical tensions. The retailer’s shares climbed as much as 5% following the announcement.

During the February-to-April quarter, Inditex recorded sales of €8.75 billion, representing an 8.8% increase on a currency-adjusted basis. The company also improved profitability, with gross margin rising to 61.2% from 60.6% a year earlier. Executives said the group has successfully adapted its supply chain to manage disruptions in global shipping and transportation caused by the ongoing conflict in the Middle East.

Inditex remains optimistic about future growth, particularly in the United States, its second-largest market after Spain. The company said sales growth is being driven mainly by higher product volumes rather than price increases, while investments in larger stores and strategic expansions continue to attract customers. Inditex maintained its full-year outlook, including stable gross margins, a 5% increase in retail space, and capital expenditure of €2.3 billion.

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Zara Denies Trademark Infringement in Estee Lauder’s Jo Malone Lawsuit

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Fashion retailer Zara has denied infringing the Jo Malone trademark in a legal dispute brought by cosmetics giant Estee Lauder in the UK High Court. Zara argued that its collaboration with perfumer Jo Malone follows guidelines previously set by Estee Lauder regarding how her name can be used in marketing. The dispute centers on Zara fragrance descriptions and packaging referencing Malone as the creator and founder of Jo Loves.

Estee Lauder, which bought the Jo Malone fragrance brand and rights to the name in 1999, claims Malone agreed not to use her name commercially in certain fragrance-related contexts. Zara’s UK unit said the wording used on its website and packaging complies with guidance issued by Estee Lauder’s lawyers in 2020, including referring to her as “Jo Malone CBE” and clearly separating her personal identity from the Jo Malone London brand.

The case also raises broader questions about how Malone can refer to herself professionally after selling rights to her name. Malone defended the Zara partnership publicly, saying the collaboration was with her personally and not linked to the Jo Malone London company. Zara also rejected claims that it misled consumers or positioned the perfumes as low-cost imitations, noting the fragrances are sold under Zara branding with prices significantly below Jo Malone London products.

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Estée Lauder Sues Jo Malone Over Use of Her Name in Zara Collaboration

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British perfumer Jo Malone is facing a lawsuit from Estée Lauder Companies over the use of her name in a fragrance collaboration with Zara. The dispute centres on packaging for a product created under Malone’s newer brand Jo Loves, which included the phrase “A creation by Jo Malone CBE, founder of Jo Loves.” Estée Lauder claims the use of her name violates agreements made when it purchased the original fragrance brand Jo Malone London in 1999.

Under the terms of that deal, Malone sold the rights to the brand and her name for commercial fragrance use. The company argues that referencing “Jo Malone” on packaging could confuse customers and potentially lead them to believe the products are linked to Jo Malone London. As a result, Estée Lauder has filed legal action against Malone, Jo Loves and Zara’s UK division, citing trademark infringement, breach of contract and passing off.

Malone founded her perfume business in the early 1990s, building a reputation for distinctive fragrances inspired by British botanicals. After selling the brand in 1999, she later launched Jo Loves as a new venture. Legal experts say the outcome will depend on the specific wording of the original agreement, though courts often enforce such contracts even when they restrict individuals from using their own names in commercial activities.

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