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Inditex sales inch up with global expansion

Zara owner Inditex has reported a 3% rise in net profit to €1.4bn (£1.25bn) and a 3% rise in net sales to €12bn (£10.7bn) for the half year to 31 July.

The group, which also owns brands including Bershka, Uterque, Stradivarius and Pull & Bear, reported that like for like sales were up 4% and were positive in all regions.

EBITDA for the period came to €2.3bn (£2.05bn), a 2% rise on the previous year.

By the end of the period, the group had 7,422 stores in 96 markets with fully integrated online sales in 49 of those markets.

Inditex also continued to roll out its integrated stock management system, which allows online customer orders to be fulfilled with store inventory using RFID technology, during the half-year. To date, integrated stock management is in place in Zara stores in 25 markets, with plans to be in all of Zara’s 48 online markets by the end of the year and across all of the group’s brands by 2020.

The results come as the business unveiled plans to sell all of its brands online globally by 2020. As part of this, Zara launched online in Australia and New Zealand in March 2018.

In current trading the business said initial autumn collections have been well received and it forecasts like-for-like sales growth of between 4% and 6% in the second half of 2018.

Inditex chairman and chief executive Pablo Isla said: “The strong first-half is the result of a solid sales and operating performance, arising from the unique strength of the group’s integrated and sustainable business model”.

 

 

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