Amancio Ortega, the Spanish billionaire behind global fashion powerhouse Zara, witnessed a staggering $10.8 billion drop in his net worth in just 24 hours, as shares of his company, Inditex, tumbled by 8% on Wednesday.
Ortega, 88, remains one of the world’s wealthiest individuals, but his fortune has now dipped to $112.4 billion, according to Forbes’ real-time billionaire index.
The market reaction comes after Inditex, the world’s largest fast-fashion retailer, reported a slowdown in sales, with revenue rising just 4% over the past five weeks, a sharp decline from the 7% or more quarterly growth rates it has consistently recorded over the past year.
What this means for fast fashion
The dip in Inditex’s performance marks its weakest trading update since 2016, excluding the pandemic period, according to analysts at UBS. The company’s latest earnings report, covering the fourth quarter—including the crucial holiday season—showed sales grew by 8.4% to €11.2 billion, while net profit surged by nearly 14% to €1.4 billion. However, the recent slowdown in growth has raised concerns that Inditex’s exceptional post-pandemic performance may be returning to more modest levels.
Sales figures point to relative weakness in key markets such as the Americas and Asia, while Europe, including Spain, Inditex’s largest market, remains a stronghold. Reports have also flagged potential risks linked to global trade tensions, particularly as the United States, Inditex’s second-largest market, waddles uncertainty regarding tariffs and economic policies.
What we know about Amancio Ortega’s wealth
Ortega, a self-made billionaire and a pioneer of the fast-fashion industry, co-founded Inditex in 1975 with his late ex-wife Rosalia Mera. Today, the retail giant operates more than 5,000 stores worldwide across its eight brands, including Massimo Dutti, Pull & Bear, and Stradivarius, but Zara remains its flagship and primary revenue driver.
Despite the recent setback, Ortega continues to reap substantial rewards from his empire. With an estimated annual dividend income of over $400 million, he has strategically reinvested his wealth into real estate across Europe and North America, securing ownership of prime properties in major cities such as London, New York, and Madrid.
In 2022, Ortega’s daughter, Marta Ortega Pérez, took over as chairperson of Inditex, marking a new era of leadership for the company. While the recent share price dip signals growing investor caution, the long-term outlook for Inditex remains tied to its ability to navigate evolving consumer trends, economic uncertainties, and the intensifying competition within the global retail landscape. For now, the billionaire retailer faces the challenge of reassuring investors and reigniting growth, as the fast-fashion industry struggles with shifting dynamics in a post-pandemic world.
