The owner of Zara is to close up to 1,200 stores around the world.
Inditex says it will be shutting down outlets as there has been a 44% fall in sales.
The fashion retailer, which also owns brands such as Massimo Dutti, Bershka and Pull and Bear, said it booked its first quarterly loss in the three months from February to April.
It said net sales fell by 44.3% to €3.3 billion for the period, despite reporting a 50% increase in online sales.
The retail group said it has seen improvement in recent months, with 5,743 stores – around 78% of its sites – reopened as of Monday June 8.
It said sales decline has also slowed down as a result, with sales 34% lower in the week from June 2 to June 8 compared to the same period last year, after posting a 51% decline in May.
In markets where stores are already open, it reported a 16% fall in sales for the past week as social distancing measures weighed on sales.
Earlier in the week, Inditex executive chairman Pablo Isla said: “Our priority through the crisis has been and continues to be the health and safety of our people and our customers.
“I would like to publicly thank all of our people for their tremendous commitment throughout the global health crisis and during the gradual return to our stores and operating facilities.
“I would like to highlight how they have consistently followed the appropriate protocols, which has delivered a consistent message of responsibility.”
Zara is the latest high street chain to be impacted by Covid-19 although it's not clear yet if Irish stores will be affected.