Zara owner Inditex has reported a stronger-than-expected start to its autumn season, with sales jumping nine per cent, despite record heatwaves disrupting traditional shopping patterns across Europe.
The fashion giant said sales at constant exchange rates rose nine per cent between 1 August and 7 September compared with the same period last year, as its autumn and winter collections were “very well received” by shoppers.
The performance was reported despite prolonged hot weather across Europe, which has created challenges for fashion retailers attempting to entice shoppers into buying coats, jackets and other colder-weather products.
Western Europe experienced its hottest June and July on record, according to EU scientists, prompting retailers to rethink buying and sourcing calendars as warmer temperatures increasingly extend into the traditional back-to-school and autumn trading period.
Inditex also delivered £9.5bn in sales during its second quarter from May to July, ahead of expectations despite high energy costs and subdued consumer confidence.
Chief executive Oscar García Maceiras said the results demonstrated the “extraordinary capabilities” of its teams as the retailer navigated a “highly complex global environment”.
Gross profit increased 8.3 per cent to £9.95bn during the first half, while its gross margin stood at 58.7 per cent.
The group, which also owns Bershka, Pull&Bear and Massimo Dutti, has continued investing heavily in its store estate and supply chain as it looks to maintain its advantage over fashion rivals.
Inditex unveiled an additional £172m of capital expenditure to upgrade its corporate offices, on top of £1.97bn already earmarked for investment this year across stores and logistics.
The Zara owner is also pushing further into the value end of the fashion market through its lower-priced Lefties fascia, which it is expanding into the UK ahead of a planned move into Germany next year.
The expansion comes as Zara itself has moved further upmarket, while pressure from ultra-low-cost online competitors such as Shein appears to be easing following a slowdown in the Chinese-founded fashion giant’s sales.
Inditex shares reached a record £50.70 last month, taking the Spanish retailer’s market value above luxury giant Hermès.
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