Zara owner Inditex sales creep up as it expects profits to boom in second half
The Spanish owner of high street store Zara Inditex today reported a steady increase in sales in the first half of the year.
The figures
The world's biggest clothing retail group said sales rose three per cent in the first six months of 2018, just surpassing €12bn (£10.7bn) for the first time.
Net profit beat first half records, topping €1.4bn, a three per cent year-on-year increase.
Earnings also climbed two per cent to reach €2.3bn in the period.
Read more: Shoppers ditch high street in one of the worst Augusts on record for retail
Why it's interesting
The company, which also owns upmarket brand Massimo Dutti and underwear label Oyshow, is controlled by Europe's richest man, Amancio Ortega.
It said Zara's autumn/winter collections including products like printed dresses and corduroy coats had been well received by customers, as it told investors it would expand profitability in the second half.
Inditex's profits can be strongly affected by currency movements, as it makes most its clothes in the Eurozone so it can be quick to respond to emerging fashion trends.
It's had a difficult year so far, as stocks have fallen 12 per cent, taking a big hit in August when Morgan Stanley slapped it with an "underweight" rating for the first time in the bank's 17-year history of covering the stock.
The results also follow Inditex saying it would sell all of its brands online globally by 2020.
What Inditex said
Chair and chief exec of Inditex Pablo Isla said:
The strong first-half results are the result of a solid sales and operating performance, arising from the unique strength of the Group’s integrated and sustainable business model.