Zara Owner Inditex Demands Clarity from Cotton Certifier Accused of Standard Breaches

 Shoppers visit a Zara store in a shopping mall the day of its reopening after being closed for more than two years due to Russian full-scale invasion of Ukraine in 2022 in Kyiv, Ukraine April 3, 2024. (Reuters)
Shoppers visit a Zara store in a shopping mall the day of its reopening after being closed for more than two years due to Russian full-scale invasion of Ukraine in 2022 in Kyiv, Ukraine April 3, 2024. (Reuters)
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Zara Owner Inditex Demands Clarity from Cotton Certifier Accused of Standard Breaches

 Shoppers visit a Zara store in a shopping mall the day of its reopening after being closed for more than two years due to Russian full-scale invasion of Ukraine in 2022 in Kyiv, Ukraine April 3, 2024. (Reuters)
Shoppers visit a Zara store in a shopping mall the day of its reopening after being closed for more than two years due to Russian full-scale invasion of Ukraine in 2022 in Kyiv, Ukraine April 3, 2024. (Reuters)

Zara owner Inditex demanded more transparency from a certifier that vets some of the cotton used by the Spanish fashion giant following an investigation that found evidence of malpractice by two Brazilian certified cotton producers.

Inditex sent a letter dated April 8 to Better Cotton CEO Alan McClay asking for clarity on the certification process and progress on traceability practices after the NGO Earthsight informed the retailer that producers with Better Cotton certifications were involved in land grabbing, illegal deforestation and violent acts against local communities, according to a copy of the letter seen by Reuters.

Inditex said it had waited more than six months for the results of an internal investigation by Better Cotton that was promised for the end of March and began in August 2023, according to the letter.

The allegations "represent a serious breach in the trust placed in Better Cotton's certification process by both our group and our product suppliers," Inditex said in the letter. "The trust that we place in such processes developed by independent organizations, such as yours, is key to our supply chain control strategy."

The contents of the letter was first published by Modaes, a fashion business news site. Inditex confirmed to Reuters it had sent the letter.

Inditex does not purchase cotton directly but its providers are audited by certifiers such as Better Cotton to ensure good practices when obtaining their raw materials.

Geneva-based Better Cotton, one of the world's largest certifiers of sustainable practices in the cotton industry, did not respond to a request for comment on Wednesday.

It said in an April 4 statement that it had concluded a third party audit of three farms implicated by Earthsight but that it would not publish its findings until it had seen the full report, which was due to be published on Thursday.

Better Cotton said its strategic partner in Brazil, the Brazilian Association of Cotton Producers, was revising elements of its standards to align with those of Better Cotton.

Created by companies and several nonprofits including the World Wildlife Fund, Better Cotton says it aims to support improved practices in areas like water and soil stewardship and to promote better working standards.

Fashion retailers face increasing pressures from consumers and activist groups to sell products with less environmental impact and made in safe labor conditions.



Zalando Says AI Drives Productivity and Expects Higher Profit, Shares Jump

FILED - 22 October 2013, Thuringia, Erfurt: A general view of the logistics center of online retailer Zalando in Erfurt. Photo: Marc Tirl/dpa-Zentralbild/dpa
FILED - 22 October 2013, Thuringia, Erfurt: A general view of the logistics center of online retailer Zalando in Erfurt. Photo: Marc Tirl/dpa-Zentralbild/dpa
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Zalando Says AI Drives Productivity and Expects Higher Profit, Shares Jump

FILED - 22 October 2013, Thuringia, Erfurt: A general view of the logistics center of online retailer Zalando in Erfurt. Photo: Marc Tirl/dpa-Zentralbild/dpa
FILED - 22 October 2013, Thuringia, Erfurt: A general view of the logistics center of online retailer Zalando in Erfurt. Photo: Marc Tirl/dpa-Zentralbild/dpa

European online fashion retailer Zalando said on Thursday its use of artificial intelligence was making its business more efficient and productive, as it forecast full-year adjusted operating profit to grow in 2026 and launched an up to 300-million-euro ($346 million) share buyback.

Zalando shares jumped 7% in early trading as investors welcomed the positive outlook, providing some succour to the stock that had tumbled sharply from peaks in 2021 when the pandemic boosted online shopping.

Zalando ⁠said AI-generated product ⁠images were saving money and time on ad creation and enabling it to publish 70% more content, while an AI virtual try-on was also helping shoppers pick their correct size, reducing size-related returns - a major headache for online shopping platforms.

Analysts said concerns had been growing over the risk to Zalando from AI, with some worried consumers could use large-language models like ⁠ChatGPT to research products and shop online, bypassing the company's platform.

The Berlin-based company, which sells clothes, shoes and accessories from thousands of brands including Nike, Hugo Boss, and Coach, expects adjusted earnings before interest and taxes (EBIT) of 660 million to 740 million euros in 2026, compared with 591 million euros in 2025.

"We are providing our customers and partners with experiences and services that seemed impossible just a few years ago while making our own operations more efficient," Robert Gentz, co-CEO of Zalando, said in a statement.

Zalando, whose business-to-business arm sells services to other retailers and ⁠brands, also announced ⁠its software unit Scayle signed a deal with Levi's to run its worldwide ecommerce, which JP Morgan analysts said investors would welcome given the brand's status and size.

The company expects gross merchandise volume growth of 12% to 17% in 2026, after GMV - a key revenue metric measuring the value of all goods sold - grew 14.7% to 17.56 billion euros in 2025.

Zalando's active customer numbers increased to 62 million in 2025 from 51.8 million in 2024, while the average order value was 62.8 euros, up from 61 euros a year earlier.

The company said it would repurchase up to 20 million shares with a total price of up to 300 million euros.


Zara Owner Inditex Posts Record Profit in 2025

Shoppers walk past a Zara clothes store, part of the Spanish group Inditex, in Las Palmas de Gran Canaria, Spain, December 13, 2022. REUTERS/Borja Suarez
Shoppers walk past a Zara clothes store, part of the Spanish group Inditex, in Las Palmas de Gran Canaria, Spain, December 13, 2022. REUTERS/Borja Suarez
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Zara Owner Inditex Posts Record Profit in 2025

Shoppers walk past a Zara clothes store, part of the Spanish group Inditex, in Las Palmas de Gran Canaria, Spain, December 13, 2022. REUTERS/Borja Suarez
Shoppers walk past a Zara clothes store, part of the Spanish group Inditex, in Las Palmas de Gran Canaria, Spain, December 13, 2022. REUTERS/Borja Suarez

Zara owner Inditex, the world's leading low-cost fashion retailer, posted a record annual profit for the third year running on Wednesday, seeing off strong international competition.

The Spanish group, which includes top brands such as Massimo Dutti, Pull & Bear and Bershka, reported a profit of 6.22 billion euros ($7.23 billion) in the fiscal year ending January 31.

That marked a six percent rise on the 5.9 billion it raked in in 2024, which was also a group record, Inditex said.


Margot Robbie, Oprah Watch Blazy Transform Chanel with Color and Craft

Models present creations from the Fall/Winter 2026 collection of French-Belgian designer Matthieu Blazy for Chanel during Paris Fashion Week, in Paris, France, 09 March 2026. (EPA)
Models present creations from the Fall/Winter 2026 collection of French-Belgian designer Matthieu Blazy for Chanel during Paris Fashion Week, in Paris, France, 09 March 2026. (EPA)
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Margot Robbie, Oprah Watch Blazy Transform Chanel with Color and Craft

Models present creations from the Fall/Winter 2026 collection of French-Belgian designer Matthieu Blazy for Chanel during Paris Fashion Week, in Paris, France, 09 March 2026. (EPA)
Models present creations from the Fall/Winter 2026 collection of French-Belgian designer Matthieu Blazy for Chanel during Paris Fashion Week, in Paris, France, 09 March 2026. (EPA)

Chanel 's Matthieu Blazy is still building. Six months into his tenure at the Parisian stalwart, the designer staged his second ready-to-wear collection at Paris Fashion Week Monday, where brightly colored cranes rose from a holographic floor — a deliberate signal that the construction is ongoing.

For Parisians who have spent years staring at the real thing above Notre-Dame cathedral, the set was perhaps less dreamy than intended.

The audience inside the Grand Palais suggested the foundations are solid: Margot Robbie, Oprah, Jennie, Kylie Minogue, Lily-Rose Depp, Teyana Taylor and Olivia Dean all turned up to watch the next floor go on.

Blazy took his cue from a quote from Gabrielle “Coco” Chanel: “We need dresses that crawl and dresses that fly.”

The collection was structured around that tension — plain against spectacular, function against fantasy — with a discipline his sprawling debut last October sometimes lacked.

The opening looks were austere by design. Black knit zip-ups, tweed blousons and boxy overshirts arrived with little more than four gold buttons to signal they belonged to Chanel.

In the vast runway space, they could read as underwhelming. But Blazy’s point was architectural: the suit, he said, is “the first brick” — and everything else rises from it.

That logic tracks to the founder.

In her apartment on Rue Cambon, a wall is covered in gauze painted gold — something poor made precious.

Chanel built a house on that idea, borrowing from everyday dress and elevating it. Blazy is doing the same with her codes, stripping the suit to a knit shirt jacket or pressed-tweed blouson before rebuilding it in silicone-woven fabric and metallic mesh.

The collection’s most provocative move was its silhouette. Blazy pulled waistlines dramatically low — belts slung to mid-thigh, pleated skirts starting where blazers ended.

The references were retro flapper filtered through a modern lens: drop-waisted twinsets, patchwork dresses with floral embroidery, vivid patterned knits with a twenties pulse.

A furry coat in bold geometric color could have been worn in a chic part of London's Camden.

Whether the ultra-low waistlines will land with the well-heeled clients who pack Chanel’s front rows is another question. Selling a radically new proportion to women with deep loyalty to the house is a different challenge than winning critical praise.

The final stretch answered that concern with force. Sequined plaid suits arrived in dazzling color. Beaded coats glinted with star-chart embroidery. Metallic mesh was woven to mimic tweed motifs, and several models wore pastel-tinted hair to match their looks.

Fabric flowers burst from bodices. Trailing ribbons, layered ruffles, and insect-wing detailing turned the runway into something closer to spectacle than commerce.

Blazy cast wide — teens through to women in their fifties — and let the show breathe, with a runway circuit that took models the better part of five minutes. He framed it all with seven pared-back black and cream looks, as if to say: whatever else changes, the Chanel you know isn’t going anywhere.

If this second outing holds — on the penultimate day of fashion week — Blazy has found something rare at a heritage house: a way to honor the founder’s voice without simply echoing it.