Zara and Bershka parent Inditex reveals sales leap

Zara is part of the Inditex group  (Zara)
Zara is part of the Inditex group (Zara)

Inditex, the world’s biggest fashion retailer behind chains such as Zara, Massimo Dutti and Bershka, has continued a “hot streak” and revealed first half sales jumped 13.5% to reach €16.9 billion (£14.6 billion).

The Spanish clothing giant said between February and July 31 Spring/Summer collections were “very well received” by customers, and sales were positive in all regions it operates in. It added that gross profit increased 14.1% to €9.8 billion.

Growth at the firm, which has around 5,745 stores, comes despite the cost of living crisis which has hurt some other High Street brands.

Óscar García Maceiras, Inditex’s chief executive said: “The ongoing commitment to creativity, quality and customer experience, as well as the determined progress in sustainability, drives a strategy that is taking our business to the next level.”

The firm pointed to a good performance so far beyond the first half, with store and online sales in constant currency between August and September 11 up 14% from last year.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown said: “Inditex continued its hot streak in the first half.. Sales growth continues to outpace higher operating costs.”

Victoria Scholar, head of investment at Interactive Investor said there could be some potential challenges ahead. She said a stronger euro is key headwind to watch, and the potential for weaker consumer demand.