Inditex, the owner of the Zara, Bershka and Pull & Bear brands, has posted a 10% jump in net profits for the first quarter of 2019, lifted by increased sales.
Net income rose to EUR736m (US$833m), while operating income grew to EUR980m from EUR851m a year earlier, helped by lower operating expenses during the period. Net sales at the group rose to EUR5.9bn from EUR5.7bn a year earlier, despite being offset by adverse weather patterns in the second part of the quarter.
During the period, Inditex opened stores in 23 markets, taking its total store count globally to 7,447 stores.
Elisha Carter, fashion and retail expert at The Cherry Moon, says the results prove the “high street isn’t the retail graveyard it is said to be.”
“The company’s 10% rise in net profits demonstrates it is a resilient and transformative retailer, capable of holding its own against the rise of the online giants.
“While there is no question that the internet has transformed how we shop, it by no means renders bricks and mortar stores obsolete. Those who are willing to work with new technologies, rather than against them, will succeed in a market where consumers rely on the internet more than ever before but who still prefer to try on and buy their clothes in-store.
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By GlobalDataAt the end of last month, Inditex said it was appointing its chief operating officer, Carlos Crespo, to the role of CEO, helping the company move toward its digital and sustainability goals.
