Yahoo Finance Inditex: Zara owner unfazed by wet weather as viral Tiktok clothing drives sales
The owner of Zara, Bershka and Pull and Bear, has hailed a strong start to the summer as wet weather did not seem to deter shoppers from hitting the high street.
Over the first quarter of the year, Inditex said it’s spring and summer collection flew off the shelves with sales up 7.1 per cent to €8.2bn (£6.9bn).
Cash cow Zara has remained one of the most resilient retailers in recent years, surging in popularity following the demise of Phillip Green’s Arcadia brands.
Garments the store sells regularly go viral on Tiktok, with social media stars regularly posting hauls of the latest items in stock.
Inditex, which also owns the Massimo Dutti and Stradivarius brands, also said gross profit increased 7.3 per cent to €4.9bn (£4.1bn).
Earnings before interest, taxes, depreciation, and amortisation grew eight per cent to €2.4bn (£2bn).
Commenting on the results, the board said: “Inditex continues to see strong growth opportunities.
“Our key priorities are to continually improve the fashion proposition, to enhance the customer experience, to increase our focus on sustainability and to preserve the talent and commitment of our people. Prioritising these areas will drive long-term growth.”
“To take our business model to the next level and extend our di¡erentiation further we are developing several initiatives in all key areas for the coming years.”
Inditex,runs a total of 5,698 stores globally. During the period it also reopened 19 stores across seven brands and resumed online operations in Ukraine.
Its success comes amid a challenging period for retailers, particularly in the UK, as damp weather has damaged sales.
