// Zara owner Inditex posts a 24% increase in net profit in the first nine months of its fiscal year
// The world’s biggest fashion retailer’s store and online sales rose 19% from a year ago
Zara owner Inditex has seen sales rise after hiking its prices, against a tough trading environment for fashion firms amid a weakening global demand for clothing.
The world’s biggest fashion retailer‘s store and online sales rose 19% from a year ago, hitting €23.1bn, slightly faster than what analysts had expected after it raised prices by 5% or more since spring to anticipate with inflationary pressures in several markets.
The Spanish fashion giant posted a 24% jump in net profit in the first nine months of its financial year, despite what chief executive Óscar García Maceiras described as a “challenging context.”
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The group, which also owns Pull&Bear and Stradivarius said that its autumn/winter collections had been very well received by customers across the globe.
Maceiras lauded “the strength of our unique business model: fashionable collections, an appealing shopping experience and a team highly committed to achieving profitable and more sustainable growth”.
Inditex also said it expected its online sales to exceed 30% of total sales by 2024.
The financial statement comes at a time when fashion retailers – including Zara’s fast fashion rivals are struggling to entice consumers to spend their hard-earned cash on clothing.
Boohoo Group reported that pre-tax profits had plummeted 94% to £7.8 million in the year to 28 February 2022.
The bad run has continued into its current financial year with Boohoo’s adjusted pre-tax profit dropping 90% to just £6.2 million in its half to August 31.
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