Zara sees profits rise by 63 per cent
Thursday 10 June 2010
Inditex, the owner of the Zara fashion chain, posted a forecast-beating 63 per cent jump in quarterly net profit yesterday as its fast-to-market business model helped it to respond quickly to an upswing in demand.
The world's biggest clothing retailer by revenue returned to double-digit sales growth in the first quarter as demand picked up after almost two years of recession, with shoppers snapping up items including oversized graphic T-shirts and harem pants.
Profits, sales and gross margin all beat forecasts, driven by positive currency effects and the proximity of Inditex's factories, which allows quick replacement of high-turnover items.
The cash-rich company has picked up market share in its home market, Spain, which accounts for a third of sales, during an economic downturn in which many smaller clothing stores have gone out of business.
Inditex, which opened its first Zara store in India in May, has also expanded aggressively into the savings-rich economies of the Middle East and Asia, reducing its exposure to sluggish Spanish consumer demand.
First-quarter net profits hit €301m (£249m), on sales up 14 per cent at €2.67bn.
- 1 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 2 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 5 UK weather: Britain braced for snow as arctic air mass moves in
Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
Ian Brady: Moors murderer announces his support for Ukip and the SNP
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
UK weather: Britain braced for snow as arctic air mass moves in
Bali Nine executions in Indonesia: Death row British grandmother Lindsay Sandiford says she 'just wants to get it over with'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...