Inditex has posted a double digit sales jump, fueled by strong Autumn/Winter collections which it said have been “very well received by our customers.”
Between February 1 and October 31, the Spanish firm, owner of the world’s largest fashion retailer Zara, saw sales grow 11.1% hitting £22bn, with growth both in stores and online.
The retail giant said sales were positive in all geographical areas and in all concepts, with sales in constant currency between November 1 and December 11 up 14% from a year earlier.
In its outlook the gtoup, which has more than 5,700 stores, said it continues to see “strong growth opportunities” despite sales growth in the nine-month period slowing amid tougher times for consumers.
“They’re in a very good place and they continue to gain strong market share,” said Alistair Wittet, portfolio manager at Comgest in Paris, which holds Inditex shares.
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The business behind Zara and Bershka, Massimo Dutti and more is cutting store numbers and investing in larger, more attractive stores, as well as improving its logistics to deliver online orders faster than rivals.
Thanks to these changes, Inditex now sees its 2023 profit margin gaining 75 basis points, having previously guided to a stable gross margin.
While cutting overall store numbers, Zara plans to open more stores in the US, its second-biggest market, and the group is investing in new checkout and security technologies to halve the time it takes customers to pay in-store.
The results come a day after it was forced to pull a campaign by Zara which triggered calls for a boycott and protests outside some of the chain’s stores after some saw the imagery of statues wrapped in white as evoking corpses in shrouds in Gaza.
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