Zara owner Inditex records hike in sales

Inditex update

Inditex has recorded a jump in sales and profits despite the strong euro impacting on a large chunk of its earnings.

The world’s largest retail company — which owns high street chains   and Massimo Dutti — posted a nine per cent rise in net profit to €1.37 billion (£1.22 billion) for the six months to July 31.

This was boosted by a six per cent rise in global like-for-like sales, although that figure is a slowdown compared to the 11 per cent spike recorded in the same half-year period last year.

Nonetheless, revenue surged 11.5 per cent to €11.7 billion (£10.3 billion) year-on-year, thanks to growth across all markets and all brands, including the opening of stores in 35 markets and 11,000 new jobs globally.

However, the Spanish firm said profit margins endured some pressure due to the recent strengthening of the euro, especially against the US dollar and pound.

Inditex is vulnerable to exchange rate movements as it makes more than half of its sales in non-euro currencies, but reports results in euros.

Despite this, its update on current trading offered hope as it revealed sales in stores and online have surged by 12 per cent since the start of August.

Chief executive and chairman Pablo Isla praised the “strength and sustainability of our integrated offline-online store model, which continues to deliver growth”.

Inditex now has more than 7400 shops across 93 countries.

Forty per cent of its sales derive from Europe, including the UK.

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