Inditex (Zara)-Sales increase in H1 before a possible slowdown in demand


INDITEX

Inditex (Zara)-Sales increase in H1 before a possible slowdown in demand | Photo credits: © Inditex

MADRID, Sept 14 (Reuters) – Inditex, owner of the Zara brand, on Wednesday reported a 24.5% jump in sales in the first half of its financial year and a profit higher than one year ago.

The Spanish ready-to-wear giant thus ends July on a solid footing as investors worry about weakening demand in the fashion sector since last month due to runaway inflation .

Inditex’s turnover amounted to 14.84 billion euros between February and July, compared to 11.9 billion euros for the same period in 2021.

The group also recorded a net profit of 1.79 billion euros, an increase of 41% compared to the result of 1.27 billion euros released a year earlier.

Inditex chief executive Oscar Garcia Maceiras said sales have continued to rise sharply in recent weeks. However, the annual growth rate has slowed slightly since the end of the first half, to 11% at constant exchange rates during the period between August 1 and September 11.

The results are in line with analysts’ forecasts, which believe that the coming August-January period should be difficult, as demand could weaken due to the rising cost of living. (Report by Corina Pons, French version Elena Vardon, edited by Jean-Stéphane Brosse)





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