Zara owner Inditex beat expectations as its half-year profits surged 40% in what the world’s biggest fashion company called a “very robust operating performance”, despite slowing the pace of its price increases.
The Spanish giant’s sales across all of its brands, including Zara, Pull & Bear, Massimo Dutti, Bershka and Stradivarius, grew 13.5%, reaching £14.5bn in this period.
It posted a net profit of £2.1bn for the six months to July 31 as the group widened its lead over Swedish rival H&M.
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This comes as Inditex slowed down price increases to customers following attempts to reduce cost inflation.
Given the strong results, the group maintained its outlook for 2023, saying it saw “great growth potential going forward”.
This Summer Inditex laid out ambitious sustainability goals at its AGM, including a pledge to reduce its emissions by more than 50% by 2030, as it looks to reach net zero by 2040.
It would now focus on low-impact fibres, supply chain transformation, biodiversity and circularity initiatives, as fast-fashion retailers face growing pressure to cut waste.
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