Yahoo Finance Zara and Bershka owner Inditex records double digit sales growth
A strong customer response to Autumn and Winter collections has helped fuel a double digit sales jump at Inditex, the world’s largest clothing retailer behind chains such as Zara.
The Spanish firm, which is also behind brands such as Bershka and Massimo Dutti, pointed to those collections being “very well received”, and added there was growth in stores and online.
Between February 1 and October 31 Inditex saw sales increase 11.1% to reach €25.6 billion (£22 billion), and net income was 32.5% higher at €4.1 billion.
The retail giant also showed good momentum has continued, with sales in constant currency between November 1 and December 11 up 14% from a year earlier.
In its outlook Inditex, which has more than 5,700 stores, said it continues to see “strong growth opportunities”.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown said: "Despite the current cost-of-living crisis, Inditex posted another solid set of numbers. Part of the success story is the group’s focus on digital investment."
Chiekrie added: "Fully integrating its online and physical store inventory is helping to improve supply chain visibility, and allows the group to react quickly to changing fashion trends. This has enabled Inditex to reduce its inventory levels, freeing up cash to deploy elsewhere in the business."
Inditex's update comes in the same week that Zara, the firm’s biggest brand, said it regrets a “misunderstanding” about a advertising campaign which faced some criticism for using photos some said resembled images from Gaza.
Zara said in an Instagram post that the campaign, which featured an image with a model holding a mannequin wrapped in white plastic, was photographed in September and presented “a series of images of unfinished sculptures in a sculptor’s studio and was created with the sole purpose of showcasing craftmade garments in an artistic context”.
The pictures have now been removed, it added.
