SPAIN: Inditex “heads pack” after Q1 profit surge
- Q1 net profit up 30% to EUR432m
- Net sales up 15% to EUR3.4bn
- Inditex leads other global fashion retailers – analyst
Zara owner Inditex is outpacing its rivals
Global fashion retail giant Inditex has recorded strong increases to first quarter profit and revenue, placing the Spanish company ahead of other international businesses, according to one analyst.
Meanwhile, the company highlighted a strong start to the second quarter of the fiscal year, with store sales up by 14% in local currencies between 1 February and 10 June.
Inditex said it also planned to launch its online store in mainland China this September, adding to the 16 European countries, plus the US and Japan, which can currently use online retailing.
The company has started work on a 70,000sq m expansion of its headquarters in Arteixo, Spain, and plans to open a new logistics centre for Massimo Dutti in Tordera, Catalonia, this September.
Inditex opened 91 new stores in the first quarter, bringing its total base to 5,618 at 30 April and adding new stores in Ecuador in May, its 85th market.
Simon Chinn, lead consultant at analyst Conlumino, said Inditex’s strong sales had been driven in particular by strong growth in emerging markets, and especially Asia.
“The first quarter performance puts Inditex firmly at the head of the pack of the world’s leading fashion retailers,” he added.
“Over a similar period, H&M’s sales increased by 5%, while Gap’s sales were flat.
“Inditex’s resounding success has come from the development of a diversified portfolio, both in terms of the geographical spread of its operations and the number of concepts it trades from internationally.”
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