Its shares were trading 3% higher in Madrid on 16 September. The pinnacle of fast-fashion success, it operates a vertical integration model that allows it to make and sell goods quickly and because the Spanish retailer releases products in small quantities, liaising with store managers closely before replenishing bestsellers, less stock requires markdowns at end of season sales.
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Warm weather across Europe – where Inditex has two thirds of its sales – also helped to boost trade.
“Zara and Zara Home performed very strongly”, Merriman said in the note. Core earnings (EBITDA) rose 22 per cent to 1.97 billion euros.
Zara wooed fashionistas this summer with a new take on 70’s styling – long hippy dresses, florals and tassels. About 60% of all of Zara’s sales were in Europe in the latest half-year period, with Spain alone accounting for about a fifth of total sales.
Isla said store growth would continue to be “significant” in China in the coming years, but said little more despite recent concerns over Asia’s economic health.
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The world’s largest fashion retailing group Inditex said net profit climbed 26% to 1.16 billion (£847 million) in its first-half of the year compared to 12 months ago, as like-for-like sales grew by 7% across the 88 countries it operates in. Gross margin of 58.1 percent is expected to stay broadly stable in the rest of the year.
