Rising input costs and transit chaos are straining apparel companies’ margins and disrupting shipments.

Weak consumer sentiment in Europe is hurting fast fashion sales, with both Primark and Zara owner Inditex reporting slowdowns. The challenging environment in Europe increasingly favors Shein and Temu, whose ability to undercut competitors on price and deliver a steady stream of trendy products positions them to take more fast fashion share. But as in the US, both companies could fall afoul of geopolitical tensions as European governments raise concerns about Chinese overcapacity—and President Trump pushes the EU to implement 100% tariffs on China imports.

H&M moves to diversify sourcing amid tariff threat: The move will enable it to stay competitive with Zara and minimize tariffs’ impact on its bottom line

Inditex points to slower growth at start of the year: But Zara’s parent company remains confident about its ability to thrive in an uncertain environment.

Inditex bounces back after a rainy summer dented sales growth: The Zara parent reported a strong start to Q3 as shoppers responded positively to its product assortment.

Zara bets on live shopping following China success: The fast-fashion retailer is expanding its live commerce capabilities to the US, UK, and Europe.

Shein, Amazon shift tactics to keep each other—and Temu—at bay: Shein is offering its supply chain services to brands, while Amazon is leaning into its delivery capabilities and customer service.

H&M will sell more third-party brands to head off competition from Shein: The fast-fashion company is the latest in a long line of retailers to turn to marketplace sales for growth.

The gap between H&M and Inditex is getting wider: While Inditex records record profits, H&M veers toward a Q1 operating loss. (This article was written with the assistance of ChatGPT.)

Consumers want to buy sustainable products: But inflation is driving them to trade down, which may slow sales of products made from recycled materials as well as organic foods.