John Galliano for Zara: a cool market response to the first collection
Since 1 October Zara has been selling John Galliano's 'Vol 1', built from its own archive. Inditex shares slipped slightly the following week; Jefferies still rates them a buy.
Archive image · Photo: Cocoochanel / Wikimedia Commons, CC BY-SA 4.0 (cropped and resized)
Zara launched the first collection by designer John Galliano on 1 October. Called "Vol 1", it draws on Zara's archive – "built from our memory" but "made for the present", as Zara puts it. The partnership was announced in March and runs for at least two years, with Galliano designing a series of seasonal collections.
The stock market reaction was muted. Inditex shares fell 1.07 percent in the week after the launch, from 53.92 euros at the close on 30 September to 53.34 euros. Analysts estimate the collection could bring Zara around 100 million euros in revenue – roughly one percentage point of the 9.5 percent growth expected for the third quarter.
Jefferies analyst James Grzinic reaffirmed his buy rating with a price target of 67 euros, FashionUnited reported. Inditex chair Marta Ortega Pérez has publicly called Galliano the designer she has "always admired most".