// Inditex posts surge in in sales and profits
// It recorded revenue growth of 36% to £5.73bn in the quarter to April 30
Zara owner Inditex has reported an increase in sales and profits but made a £184million provision for estimated costs arising from the impact of the war in Ukraine.
The group recorded a revenue growth of 36% to £5.73 billion in the quarter to April 30, when net income profit of £646 million was up 80% year-on-year.
Performance reflected “a sharp recovery in store footfall” following the pandemic and gross margin of 60.1% was the highest in a decade.
READ MORE: Inditex to resume operations in Russia ‘as soon as possible’
Inditex said it has made a £184 million provision this year for estimated costs arising from the impact of the war in Ukraine, which led to store closures there as well as Russia.
Inditex said it has “retained almost all of the extraordinary online growth” achieved in the first quarter of last year as online sales fell 6% year on year.
In the current quarter, sales increased by 17% in constant currency between May 1 and June 5.
Chief executive Óscar García Maceiras said the performance was a testament to a “well-differentiated model that is delivering strongly.
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