Shares in the Zara owner fell after it reported a slowdown in sales growth, as the rise of Chinese low-cost online platforms heats up competition in the fast-fashion industry.

Inditex cited no reason for slower growth, but businesses have been warning of weaker demand, especially in the U.S. as trade tensions mount.

Shares in Zara owner Inditex fell 7 per cent on Wednesday after the world’s biggest fashion retailer said sales growth had started to slow. Inditex alarmed investors after results showed sales rose 4 per cent in the past five weeks,

Zara owner Inditex on Wednesday posted a rise in fourth-quarter sales that met expectations but pointed to a slowdown in demand at the start of the year.

Zara owner Inditex on Wednesday reported a slower start to its first quarter starting February 1, raising questions around its ability to keep building on rapid recent growth and sending its shares down more than 8% in early trading.

Europe’s biggest fashion retailer Inditex has seen sales growth slow in recent weeks, sending its share price down to a seven-month low and raising fears that consumer confidence is weakening. The Spanish owner of brands including Zara,