Inditex posts jump in sales, shares spark

11th Sep 2024 13:30

(Sharecast News) - Zara-owner Inditex posted a jump in autumn sales on Wednesday, as it flagged "very robust" trading during the first half.

The Spanish giant, which also owns Pull & Bear, Massimo Dutti and Bershka, among others, said sales rose 7.2% in the first half to €18.1bn, as shoppers snapped up its summer ranges despite poor weather.

In constant currencies, sales rose 10.2%.

Gross profit improved 7.5% to €10.5bn, while net income strengthened 10.1% to €2.8bn.

New shops were opened in 34 of Inditex's 214 markets, bringing the total at the period end to 5,667 stores.

The retailer said: "In the first half, Inditex continued with a very robust operating performance, due to the creativity of the teams and the strong execution of the fully integrated store and online business model."

Looking to the second half, it said its autumn/winter collections had also been well received, with sales up 11% year-on-year between 1 August and 8 September.

Shares in Inditex were up nearly 5% as at 1315 BST.

Oscar Garcia Maceiras, chief executive, said: "The design and quality of our fashion proposition and the experience we offer our customers are, together with the efficiency and increasing sustainability of our operations, the keys to the solidity of these results."

Russ Mould, investment director at AJ Bell, said: "Inditex has delivered a solid performance in a choppy market, once again living up to its reputation of being one of the world's best-run retailers.

"Autumn ranges have got off to a good start and margins improved in the first half. Inventory levels have fallen, implying a good turnover of stock and avoiding the fate of many other retailers who have been slashing prices to shift unsold clothes."