More than a Chairperson - Founder’s Daughter Takes Zara Helm

A building is reflected in the window of a Zara clothes store, part of the Spanish Inditex group, in Bilbao, Spain, November 30, 2021. (Reuters)
A building is reflected in the window of a Zara clothes store, part of the Spanish Inditex group, in Bilbao, Spain, November 30, 2021. (Reuters)
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More than a Chairperson - Founder’s Daughter Takes Zara Helm

A building is reflected in the window of a Zara clothes store, part of the Spanish Inditex group, in Bilbao, Spain, November 30, 2021. (Reuters)
A building is reflected in the window of a Zara clothes store, part of the Spanish Inditex group, in Bilbao, Spain, November 30, 2021. (Reuters)

The daughter of Inditex's billionaire founder takes the helm of his Zara fashion empire on Friday with a more hands-on role than originally expected by outsiders, though a much lower salary than her veteran predecessor.

Marta Ortega, Amancio Ortega's youngest child, will not only be non-executive chairperson, as announced in November, but will also manage the firm's communication strategy and its internal audit body, the company said in an annual report on remuneration of directors sent to Spain's stock market regulator last month.

The 38-year-old will also remain involved in managing fashion merchandise at Zara, the business that generates 70% of Inditex's revenues, the company said.

In return, Marta Ortega will receive an annual salary of one million euros ($1.1 million), the document showed - 100,000 euros for overseeing the board and 900,000 euros for her work as non-executive president.

Along with new CEO Oscar Garcia, Marta Ortega replaces veteran executive president Pablo Isla, who oversaw an eight-fold increase in Inditex's share price that has seen its market value surge to almost 93 billion euros.

He leaves with a golden handshake and a promise not to work for a competitor for two years. Inditex paid Isla 12.4 million euros in his last year with the company, more than double what he received in 2020 as the executive president, the company report shows, adding that 9.9 million euros was paid in cash.

Inditex said it determined Marta Ortega's salary based on "her knowledge of the retail business in the fashion sector and of the Inditex Group."

Though her role is not directly comparable to Isla's, Marta Ortega will still have an extensive overview of the company.

"Even if Ortega will not be in charge of the day-to-day finances, she will be at the forefront of the evaluation units that allow her to make sure things are going well," said Santiago Alvarez de Mon, a professor of leadership at the IESE business school in Madrid.

The transition comes as the world's largest fast fashion retailer by sales, having largely weathered the COVID pandemic, faces the challenge of losing revenues from Russia, where it has mothballed operations following the invasion of Ukraine, and surging inflation that will likely force it to raise prices.

Zara, and other group chains such as Stradivarius and Pull&Bear, must also deal with the rapid rise of Shein, the world's largest online-only fashion company selling cheap clothes to primarily younger customers.

Jitters

News of Isla's departure, and his replacement by Marta Ortega and Oscar Garcia, initially sparked market jitters.

But investors were reassured a team of managers, who have been with the company for anything between 18 and 42 years, will support the new leaders.

The transition is also being closely monitored by Ortega senior, who owns 59.2% of Inditex shares, sources familiar with the process said.

Guido Stein, a Spanish author and professor on companies leadership at IESE, said it was reasonable Marta Ortega would be paid less than Isla.

"She is just starting out in that position and her family receives much more from the company's profits," he said.

Ortega senior, who retired in 2011 but remains on the board in return for an annual payment of 100,000 euros, was paid an annual salary of 600,000 euros when he headed the company and always worked alongside an executive partner.

The 86-year-old will receive 1.7 billion euros in dividends this year, sources familiar with the process said.

Isla told journalists at his last press conference in March that he had "maximum confidence in the future of the company" under the new leadership team.

Royal Bank of Canada and Deutsche Bank analysts told Reuters they did not expect much strategy change as an Ortega returns to the top of the company.

"As a family member who has been closely involved with the business over the last few years, Marta Ortega will be significantly more involved than most non-executive chairpersons would be," Deutsche Bank's Adam Courcharne said.



Tommy Hilfiger Takes Over Plaza Hotel for His Colorful Return to NY Fashion Week

American model Gigi Hadid presents a creation by Tommy Hilfiger for the New York Fashion Week Tommy Hilfiger runway at the Plaza Hotel in New York, New York, US, 10 September 2026. (EPA)
American model Gigi Hadid presents a creation by Tommy Hilfiger for the New York Fashion Week Tommy Hilfiger runway at the Plaza Hotel in New York, New York, US, 10 September 2026. (EPA)
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Tommy Hilfiger Takes Over Plaza Hotel for His Colorful Return to NY Fashion Week

American model Gigi Hadid presents a creation by Tommy Hilfiger for the New York Fashion Week Tommy Hilfiger runway at the Plaza Hotel in New York, New York, US, 10 September 2026. (EPA)
American model Gigi Hadid presents a creation by Tommy Hilfiger for the New York Fashion Week Tommy Hilfiger runway at the Plaza Hotel in New York, New York, US, 10 September 2026. (EPA)

American designer Tommy Hilfiger brought a youthful mix of oversized polo shirts and plaid bucket hats to his spring/summer 2027 collection, unveiled at Manhattan's Plaza Hotel on the first official day of New York Fashion Week.

Guests watched the runway show on Thursday from plush green armchairs arranged throughout the carpeted lobby of the hotel — a venue of personal significance for Hilfiger, who lived in a penthouse there with his wife for over a decade.

Model Gigi Hadid opened the show wearing loose-fitting red pants and a tan suit jacket paired with ‌a navy ‌blue bucket hat. The looks that followed were dominated ‌by ⁠Hilfiger's quintessential bright red ⁠and navy blue palette, interspersed with an array of bold colors and patterns from bright yellow pants to a flowing silk dress.

"Here we are with a new look — but still Tommy Hilfiger," Hilfiger told Reuters before the show, which marked his return to New York Fashion Week after a hiatus. "We wanted to show the youth that we were able to ⁠take our classics and rework them and reintroduce them."

The ‌designer, 75, launched his namesake ‌brand in 1985 and emphasized that the latest collection aims to appeal to ‌Gen Z.

The brand, owned by PVH Corp, has leaned into what it ‌calls its "Prep Made Current" aesthetic, drawing inspiration from classic American looks.

Model Kate Moss, singers Camila Cabello and Jisoo, New York Knicks players Karl-Anthony Towns and Josh Hart and actor Patrick Schwarzenegger were among the front-row spectators.

Violinists filled the ‌room with renditions of hip-hop songs, including Jay-Z's "Empire State of Mind," before a live performance by singer Slayyyter ⁠rounded out the ⁠show.

SIRIANO EVOKES FRENCH GRANDEUR

American fashion designer Christian Siriano, a favorite among Hollywood stars, also presented his spring/summer 2027 collection on Thursday in a runway show dominated by corsets and embroidered fabrics.

The line, inspired by the "romance and fantasy of 18th-century France," Siriano said in a statement, morphed from monochrome lace dresses and suits to flashy hot-pink, purple and floral gowns.

"It's a little mythical, it's a little dream-like," Siriano told Reuters before the show. "Dark into fantasy dream land."

New York Fashion Week is set to run through September 15, featuring about 70 runway shows and designer presentations. Hilfiger and Siriano's collections came on the heels of shows from Ralph Lauren, Coach and Diane von Furstenberg.


Zara Owner Inditex Looks to US for Next Phase of Growth

The sign of a Zara store is displayed on the outside of one of its clothing stores in London, Britain, September 10, 2026. (Reuters)
The sign of a Zara store is displayed on the outside of one of its clothing stores in London, Britain, September 10, 2026. (Reuters)
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Zara Owner Inditex Looks to US for Next Phase of Growth

The sign of a Zara store is displayed on the outside of one of its clothing stores in London, Britain, September 10, 2026. (Reuters)
The sign of a Zara store is displayed on the outside of one of its clothing stores in London, Britain, September 10, 2026. (Reuters)

Fast fashion giant Inditex is investing in the United States as a key growth market, CEO Oscar Garcia Maceiras told Reuters, as the Zara owner opens new stores and revamps existing outlets to woo more aspirational shoppers.

Zara store openings are planned in Denver, Phoenix, and Pittsburgh, and Inditex will also bring its upscale Massimo Dutti brand and Gen Z-focused Bershka brand to New York, having launched both in Miami.

Inditex's expansion in the US, its second-largest market by sales after Spain, has been gradual as the retailer gauges demand in each city through online orders before opening stores.

"The US, due to the population, due to the level of relevance, is attracting a lot of interest," Garcia ‌Maceiras said in an ‌interview in London, adding that Inditex is focused on "selective growth" and ensuring ‌each ⁠store is profitable.

The €170 ⁠billion ($197 billion) Spanish company has transformed since the pandemic, growing sales while reducing its global store count as it prioritizes larger flagship locations.

Inditex has about 2,000 fewer stores than it did in January 2019. While the number of stores has fallen 27% from their peak, total selling space in square meters is only 7% lower.

"As the business has scaled they've been able to access more prime locations, so that has enabled them to reduce the store count but actually improve the quality of where they're ⁠selling and attract more footfall," said Edward Kevis, global equity fund manager at ‌Aviva Investors in London, an Inditex shareholder.

Garcia Maceiras said refurbished ‌stores such as Zara's Oxford Street outlet in London, which reopened in June after a five-month renovation, have delivered ‌a "significant improvement" in conversion rates, the percentage of browsing customers who make a purchase.

By the end ‌of 2027 Inditex plans 20 expansion projects in the US, including new stores, expansions and refurbishments across Zara, Bershka and Massimo Dutti. The company also recently opened new stores in Brazil and South Korea, and has numerous projects in Europe, which accounts for 67% of total sales.

BIGGER THAN HERMES

Inditex's market value has recently overtaken that of ‌luxury group Hermes, partly reflecting investor concerns about growth prospects in luxury. Hermes shares are down 34% this year and luxury market leader LVMH has ⁠fallen 37%, while ⁠Inditex remains close to a record high reached in August.

After price hikes by many fashion labels, middle-income shoppers who might previously have splurged on a luxury handbag or shoes may now be drawn to Zara or Massimo Dutti, which sells $320 dresses and $400 leather boots.

"Many customers are mixing in their wardrobes different types of products, from different segments of the market (with) maybe some degree of trading down from luxury," said Garcia Maceiras. "The wardrobe does not belong to one single brand anymore."

'LEVEL PLAYING FIELD'

As Inditex expands its budget brand Lefties, often viewed as a rival to Shein, its competitive position has benefited from the European Union's decision to end duty-free access for e-commerce parcels in July, prompting Shein to raise prices.

Garcia Maceiras, who had previously called for the policy change, played down its impact on Inditex.

"Our global market share is around 2%, so we remain focused on our own business," he said. "If it's something that provides the different players a level playing field, the same rules for everybody, for us, it's fine."


American Eagle Sticks to Annual Sales Forecast Again, Shares Slump

FILE PHOTO: A view of an American Eagle Outfitters store in Arlington, Virginia, US, June 1, 2021. REUTERS/Erin Scott/File Photo
FILE PHOTO: A view of an American Eagle Outfitters store in Arlington, Virginia, US, June 1, 2021. REUTERS/Erin Scott/File Photo
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American Eagle Sticks to Annual Sales Forecast Again, Shares Slump

FILE PHOTO: A view of an American Eagle Outfitters store in Arlington, Virginia, US, June 1, 2021. REUTERS/Erin Scott/File Photo
FILE PHOTO: A view of an American Eagle Outfitters store in Arlington, Virginia, US, June 1, 2021. REUTERS/Erin Scott/File Photo

American Eagle Outfitters on Wednesday reiterated its annual comparable sales forecast, as the apparel maker sees persistent pressure on seasonal categories in its namesake brand amid choppy discretionary spending.

Shares of the company, which said it expects current-quarter gross margin to be flat from a year earlier, fell about 10% in extended trading, Reuters reported.

Demand for apparel has remained uneven as stubborn inflation and macroeconomic uncertainty prompt shoppers to focus on ⁠value and essentials ⁠such as gas and groceries and wait for promotions before buying clothing and accessories.

American Eagle, like peers such as Gap, has been navigating challenges including weakness in certain seasonal categories in the last few months.

"We have seen a little pressure on seasonal ideas in American Eagle," said Jennifer Foyle, executive creative director at American Eagle and Aerie, adding ⁠that the company continues to see some of that pressure going into the third quarter and is working on right-sizing inventory.

For the quarter ended August 1, inventory cost was up 14% from a year ago, including the impact of incremental tariffs. The company said it plans to continue rebalancing inventory across brands and categories throughout the year.

The broader apparel sector has seen mixed demand patterns, with some retailers struggling to anticipate shifting fashion trends and changing customer preferences.

The inventory issues and promotional activity in the third quarter for American Eagle are primarily concentrated ⁠in some seasonal businesses, ⁠especially shorts, Foyle said, adding that "there is some fashion that we need to ensure that we're clearing."

"American Eagle continues to struggle as our experts have pointed out a less-clear brand voice and merchandising strategies ... AE falls behind the likes of Levi's and Abercrombie," said Patrick Ricciardi, analyst at Third Bridge.

The company, which maintained its fiscal 2026 comparable sales forecast for the second time this year, expects it to be up mid-single digits.

American Eagle's quarterly revenue of $1.38 billion edged past analysts' estimates of $1.37 billion, according to data compiled by LSEG.

It raised annual operating income target after including the impact of $196 million in tariff refunds received during the second quarter.