Inditex, the world’s largest clothing retailer, has had a strong quarter as it posted a 26% increase in sales for the first half of its fiscal year, beating expectations.
Warm weather across Europe helped drive sales for the A Coruña based company, which recently hit a £65bn valuation.
Zara, Inditex’s crown jewel, remains ever in demand as its online arm expands and additional stores pop up in Asia. Since 2010 the retail giant, which also owns the Bershka, Pull & Bear and Massimo Dutti brands, has opened around 400+ stores annually.
Zara is storming ahead of its rivals. The pinnacle of fast-fashion success, it operates a vertical integration model that allows it to make and sell goods quickly and because the Spanish retailer releases products in small quantities, liaising with store managers closely before replenishing bestsellers, less stock requires markdowns at end of season sales.
Inditex’s results come as competitor H&M filed its weakest monthly sales growth (August) in almost two years, citing unseasonably warm weather as the problem, as it delayed the introduction of autumn ranges.
In the past year alone the business says it created 12,000 new jobs, 2,532 of which are in Spain. Of all brands, Zara Home performed the strongest with a sales increase of 22%.