Sales surge for Zara owner Inditex as shoppers update summer wardrobe
Zara owner Inditex reported a 16 per cent uptick in sales in its spring and summer collection, as the fashion giant’s new trends continue to lure in shoppers despite the cost of living crisis.
Inditex, which is the world’s biggest fashion retailer, racked in €1.2bn (£1.03bn) in net profit in the first quarter of the year, up 54 per cent compared to the same period last year.
The retailer which also owns fashion brands Pull & Bear and Bershka also reported a 14 per cent increase in Ebitda to €2.2bn (£1.89bn).
Since the collapse of Arcadia and its Topshop brand, Inditex’s Zara has become one of the most popular female clothing brands – with its dresses and tops often going viral online and selling out.
In the fast fashion space, it has also out performed rivals such as H&M whose profits tumbled in January.
As it continues to gain popularity, the group is looking to pump cash into improving customer experience, also revealing plans to roll out more self-checkout areas and click-and-collect points.
Despite ongoing economic challenges, the group also announced in February a 20 per cent wage increase for employees in its home country of Spain.
“The creativity of our teams and the flexibility of the business model in conjunction with in-season proximity sourcing allows a swift reaction to customer demand,” Inditex said in a statement
“This situation results in a unique market position which provides our business model with great growth potential going forward.”
Its shares were up 6.10 per cent when markets opened this morning.