Zara Is Enveloped by Cloud Over Europe's Fashion Retailers.

Shares in Index have fallen 4.5 percent in 2017 due to a strong euro and a slowdown in like-for-like performance.

LONDON, United Kingdom — You know things are bad in Europe’s fashion industry when even Inditex SA is having a tough time.

Shares in the Zara owner have fallen 4.5 percent in 2017, putting them on course for their worst year since 2008. While the drop is far less than for peers including Hennes & Mauritz AB (down 22 percent) and Esprit Holdings Ltd. (down 35 percent), it illustrates that even the best in the business are not immune to the challenges of ever-increasing online and discount competition.

“Even for them, they are seeing margins under some pressure, predominantly because the competitive landscape is so tough,” said Mark Phelps, chief investment officer of global concentrated equities at AllianceBernstein in London.

By Bloomberg.

Full story at Business of Fashion.