Clothing retailer Inditex, which owns the Zara chain, posted a 32 per cent jump in first-half year profit today, taking market share in its home market Spain and grabbing new customers online and in emerging markets.
The Spanish retailer, which runs eight brands including upmarket Massimo Dutti, youth label Bershka and underwear store Oysho, posted net profit of €944 million, compared with €905 million forecast by banks and brokerages.
"The drivers are certainly there - the rapid rollout of online sales and fast fashion - but even so it's a spectacular performance," said Anne Critchlow, analyst at Societe Generale.
The retailer said like-for-like sales at the start of the third quarter through September 17th rose 7 per cent.
Inditex has given no guidance so far on its online performance, but internet sales could be boosting growth to the tune of at least 2 percentage points, Societe Generale calculates.
"Online is allowing Inditex to access customers that wouldn't be near one of its concept stores," said Critchlow.
Inditex made sales of €7.2 billion and earnings before taxes, interest, depreciation and amortisation (EBITDA) of €1.6 billion, compared with forecasts of €7.1 billion and €1.6 billion.
Reuters
