PARIS – The sales of Zara parent company Inditex continued its upward trajectory and rose by 16.6 percent in the first half of the year, adjusted for currency effects, compared to the same period in 2022 to 16.9 billion euros.
The Spanish company’s gross profit exceeded 9.8 billion euros, growing by 14.1 percent year-on-year.
“The first half results show that the talents of our teams continue to consolidate the performance improvements of our business model. The ongoing commitment to creativity, quality and customer experience, as well as determined progress in sustainability, drive a strategy that takes our company to the next level,” said Óscar García Maceiras, CEO of Inditex.
The group opened 625 stores in 213 markets last year, including 161 stores of its flagship brand Zara. New branches were opened in 20 markets. The company now operates 5,745 stores across its brands, including Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Zara Home.
The strength of the first half of the year continued: Sales at the end of summer and the beginning of the fall season from August 1 to September 11 increased 14 percent year-on-year. The company also praised its continued fashion evolution with partnerships including Zara’s collaboration with Steven Meisel.
The company also asserted greater control over its supply chain, reducing inventory by 6.9 percent while increasing prices and increasing store presence in key markets through a new design concept in key locations, including Paris. Rotterdam, Netherlands; Dubai; Sao Paulo, Brazil and Shenyang, China.
The Berksha branches Milan Vittorio Emanuele and Stradivarius Barcelona Paseo de Gracia were also expanded.
Inditex’s results easily beat analysts’ forecasts, with revenue about 1 percent ahead of estimates.
“We view Inditex as a strong omnichannel fashion retailer that has historically benefited from its speed to market and product-driven manufacturing process,” RBC analyst Richard Chamberlain said in a note after the earnings release. The company’s reduction in inventory levels as well as the introduction of new technologies, including RFID tags and investments in omnichannel, have helped boost investor confidence, he added.
These tags, which the company has touted as an alternative to hard plastic tags, are being tested in key markets and are expected to be rolled out globally by the end of 2024, the company said.
https://wwd.com/business-news/financial/inditex-h1-sales-up-retailer-adds-stores-raises-prices-1235807086/ Inditex H1 Sales Jump 16.6% as Retailer Opens Stores and Raises Prices – WWD