Zara owner Inditex reports stronger-than-expected start to summer trading

Kieran Howells
Zara
FashionNews

Zara owner Inditex has posted a strong start to summer trading, with sales growth in May coming in ahead of analyst expectations.

The fast fashion giant said currency-adjusted sales rose 11.5 per cent in May, beating forecasts for 8 per cent growth and offering reassurance that the retailer continues to attract shoppers despite pressure on household budgets.

For its first quarter, which ran from February to April, Inditex reported currency-adjusted sales growth of 8.8 per cent.

The Spanish retail group posted quarterly sales of €8.75 billion, equivalent to around $10.17 billion.

Profitability also improved during the period, with gross margin rising to 61.2 per cent from 60.6 per cent a year earlier.

The margin uplift suggests Inditex has been able to protect profits despite higher raw material and freight costs.

The stronger trading update is likely to be welcomed by investors, with Inditex shares having fallen since the start of the year.

The retailer, which also owns brands including Pull&Bear, Bershka, Massimo Dutti and Stradivarius, has continued to benefit from its fast-moving supply chain and ability to respond quickly to changing fashion trends.

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Kieran Howells

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Zara owner Inditex reports stronger-than-expected start to summer trading

Zara

Zara owner Inditex has posted a strong start to summer trading, with sales growth in May coming in ahead of analyst expectations.

The fast fashion giant said currency-adjusted sales rose 11.5 per cent in May, beating forecasts for 8 per cent growth and offering reassurance that the retailer continues to attract shoppers despite pressure on household budgets.

For its first quarter, which ran from February to April, Inditex reported currency-adjusted sales growth of 8.8 per cent.

The Spanish retail group posted quarterly sales of €8.75 billion, equivalent to around $10.17 billion.

Profitability also improved during the period, with gross margin rising to 61.2 per cent from 60.6 per cent a year earlier.

The margin uplift suggests Inditex has been able to protect profits despite higher raw material and freight costs.

The stronger trading update is likely to be welcomed by investors, with Inditex shares having fallen since the start of the year.

The retailer, which also owns brands including Pull&Bear, Bershka, Massimo Dutti and Stradivarius, has continued to benefit from its fast-moving supply chain and ability to respond quickly to changing fashion trends.

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