• H1 net profit up 26% to EUR1.16bn (US$1.31bn)
  • Sales grow 17% to EUR9.42bn
  • Like-for-like sales up 7%
Inditex opened new stores in 35 markets in the period

Inditex opened new stores in 35 markets in the period

Spanish clothing giant Inditex has revealed what analysts have described as a “strong” set of first-half results with double-digit sales and profit gains.

In the three months to the end of July, net profit stood at EUR1.16bn (US$1.31bn), representing growth of 26% year-on-year. Revenue rose by 17% to EUR9.42bn, underpinned by growth across all of Inditex's geographical markets. First-half like-for-like sales growth stood at 7%.

Inditex opened new stores in 35 markets in the period, bringing the total store count across its 88 markets to 6,777.

The group has an online presence in 28 markets, and in September went live in Hong Kong, Macau and Taiwan, while Oysho, Massimo Dutti, Stradivarius and Pull&Bear launched online platforms in China.

Looking to the second half, store and online sales in local currencies have increased by 16% from 1 August to 10 September.

Bernstein analyst Jamie Merriman described the update as “another strong set of results” from Inditex with “impressive” sales growth.

For the second half, however, he added: “We believe the key questions will be: 1) has Inditex seen any weakening in emerging markets and 2) will US dollar strength put pressure on margins. We believe Inditex will continue to deliver strong sales growth in H2 despite general emerging markets’ challenges, given their low market share and position in key markets.”