Inditex SA, the parent company of fashion retailer Zara, announced Wednesday that its sales for the first six months of its fiscal year rose 13.5% to €16.9 billion. In a separate trading update, the company reported that its store and online sales, calculated at a constant currency basis, increased by 9% between Aug. 1 and Sept. 11.
The financial results, covering the period from Feb. 1 to July 31, were detailed in a report released by the Spanish multinational clothing retailer. The company’s net profit for the first half of the year grew to €2.5 billion, an increase from €1.8 billion during the same period in the previous year. This figure exceeded the average analyst forecast of €2.4 billion, according to data compiled by financial markets firm Refinitiv.
In a statement accompanying the results, Inditex CEO Óscar García Maceiras said, “The first-half results demonstrate that the talent of our teams is consolidating the improvements in the performance of our business model.” He added that the company’s focus on creativity, product quality, and customer experience continues to be effective.
Inditex operates several retail brands in addition to Zara, including Pull&Bear, Massimo Dutti, Bershka, and Stradivarius. The company noted that sales were positive across all geographical regions and for all of its brands during the first-half period. Gross margin also increased, reaching 58.2%.
The update on early autumn trading comes as retailers navigate changing seasonal patterns and economic conditions. The 9% sales growth reported for the August to early September period provides an initial indication of consumer activity leading into the latter half of the year.
The company confirmed its outlook for the remainder of the fiscal year, based on the information available at the time of the report. Inditex stated it continues to see significant growth opportunities in its markets and is proceeding with its store optimization and digitalization strategy. As of the report, the company operated 5,745 stores globally.
