// Inditex sales and profits rise despite rampant inflation
// Sales rose to €14.84bn between February and July from €11.9bn
Zara owner Inditex first-half sales and profits hit historic highs, both surging 24.5%.
The strong performance has continued through the summer with group sales up 11% in constant currency from August to September 11.
Across the half year, Inditex’s sales rose to €14.84 billion between February and July from €11.9 billion in 2021, while profits hit €8.5 billion.
Gross margin hit its 57.9%, its highest level in seven years.
All regions that Inditex trades in achieved sales growth over the half to July. The fashion giant said that store sales and traffic “increased markedly and continue to do so”.
It said its store differentiation was key to this growth.
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Online sales also grew and are expected to make up 30% of the overall group by 2024.
The retail group pushed ahead with store expansion in the first half of the year, opening shops in 24 markets. Its total store count now stands at 6,370.
Inditex highlighted higher inventory levels as it accelerates the flow of the new season stock to tackle supply issues.
Inditex CEO Oscar Garcia Maceiras said its strong results were down to four factors. It’s “unique fashion proposition”, an increasingly optimised shopping experience, its focus on sustainability, and the talent and commitment of its people.
“Our business model is progressing at full pace and has great growth potential going forward,” said Macieras.
