Spanish clothing giant Inditex booked increases in both earnings and revenues in the first six months of the year, underpinned by a strong operating performance and continued global growth in both its online and store network.
The company, whose brands include Pull & Bear, Bershka and Massimo Dutti, today (12 September) said net income in the three months to 31 July totalled EUR1.41bn (US$16.3bn), up 3% from EUR1.37bn a year earlier.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Net sales were also up 3%, reaching EUR12.02bn from EUR11.67bn in the prior year, while sales in local currencies grew 8% and like-for-like sales were up by 4%; positive across all geographies.
Gross margin in the quarter expanded 30 basis points to 56.7% from 56.4% last year.
Meanwhile, Inditex continues to roll out its global, fully integrated store and online platform. The retailer, which today operates 7,422 stores, opened locations in 44 markets during the period.
In addition, Zara launched online in Australia and New Zealand on 14 March and, with a view to making Inditex’s fashion collections available to all customers, will offer online sales across all concepts anywhere in the world by 2020.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“The strong first-half results are the result of a solid sales and operating performance, arising from the unique strength of the group’s integrated and sustainable business model,” said Inditex chairman and CEO Pablo Isla.
Looking ahead, management estimates like-for-like sales growth of 4%-6% in the second half of 2018, with the initial autumn/winter collections having been well-received.
Inditex will publish its interim nine months 2018 results on 12 December.
