Inditex, the parent company of Zara, Pull&Bear, and Massimo Dutti, has reported a 14% increase in sales for the first half of its fiscal year, beating expectations and continuing its impressive growth trajectory.
The Spanish fashion giant said on Wednesday that its sales for the six months to July 31 reached €16.7 billion ($16.5 billion), up from €14.7 billion in the same period last year. This growth was driven by strong demand for its new collections, particularly at its flagship brand Zara, which accounts for around two-thirds of the group’s sales.
Inditex’s net profit for the period also rose by 14%, to €1.8 billion, driven by higher sales and cost controls. The company’s gross margin remained stable at 58.5%, despite rising input costs.
The results highlight the continued strength of Inditex’s business model, which is based on offering fashionable and affordable clothing to a wide range of consumers. The company has been able to maintain its growth momentum even in the face of challenging economic conditions, thanks to its strong brand portfolio, its efficient supply chain, and its ability to adapt quickly to changing consumer trends.
The company’s strong performance in the first half of the year bodes well for the rest of the fiscal year. Inditex said that its autumn/winter 2023 collection has started well, with positive customer feedback and strong sales. The company is also expecting to benefit from the opening of new stores in key markets around the world.
Inditex is one of the world’s largest fashion retailers, with over 6,500 stores in 96 markets. The company has been a pioneer in the fast fashion industry, and its success has been a major factor in the growth of the Spanish economy.
The company’s shares rose by 3% in Madrid on Wednesday following the release of the results. Analysts said that the strong performance and positive outlook for the rest of the year had boosted investor confidence in the company.
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