Fast fashion fades as H&M, Zara shine light on industry strains

Now even fast fashion is getting tougher.

Inditex, the owner of the Zara chain, said on Wednesday that profitability shrank to an eight-year low. Main rival Hennes & Mauritz reported the first monthly sales drop in almost four years. Shares of both retailers sank.

The reports illustrate the difficulties facing the fashion industry as consumers divert spending to leisure activities and buy more of their apparel from a rising number of online suppliers. The increased competition is putting pressure on prices, while higher production costs are also squeezing profitability. Sydney Morning Herald – Read more…