Fashion giant behind Zara enjoys spring sales boost after bumper year
Inditex said its global sales reached 8.2 billion euros (£) between February and April, 7.1% higher than a year ago.
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Your support makes all the difference.The retail giant behind Zara has said its spring and summer collections have enjoyed higher sales in recent months, as the business steams ahead with plans to digitise its global stores.
Inditex, which also owns fashion brands including Pull&Bear and Bershka, said its global sales reached 8.2 billion euros (£7 billion) between February and April.
This was 7.1% higher than the same period a year ago.
The first-quarter sales update marks a slight slowdown following a record-breaking year for one of the world’s biggest fashion firms.
But Inditex said sales have been even stronger in recent weeks, with May sales 12% higher than the same month last year and its spring and summer fashion collections enjoying good demand from customers.
The Spanish company, which has about 5,700 stores around the world, reported a gross profit of 4.9 billion euros (£4.2 billion) for the latest period, up 7.3% from 4.6 billion euros (£3.9 billion) this time last year.
In April, Inditex reopened 19 of its stores and restarted online shopping in Ukraine, having temporarily closed shops following Russia’s invasion two years ago.
It also opened new shops in countries including Uzbekistan, further extending its global reach.
The company makes most of its sales in Europe, but also has a large network of stores in America and Asia.
Meanwhile, the fashion giant said it has kickstarted an “extraordinary” two-year investment programme to grow its logistics operations.
It will plug 1.8 billion euros (£1.5 billion) into modernising its warehouses as part of plans to sell even more clothes and accessories.
It has also been introducing new security technology into its stores, which is set to replace security tags with tiny chips amid efforts to deter shoplifters and streamline the shopping experience for customers.
Inditex said the new system will be fully operational in Zara this year, and steadily rolled out across its remaining brands.
Central to Inditex's success is its fashion-forward approach, allowing the business to pitch itself at the higher end of the fast-fashion market with higher prices to reflect its position
Robyn Duffy, senior analyst for consumer markets at RSM UK, said: “Central to Inditex’s success is its fashion-forward approach, allowing the business to pitch itself at the higher end of the fast-fashion market with higher prices to reflect its position.
“Customer-centricity remains a key strength with innovation in this area a key focus for the company.
“This is evidenced by Zara’s recent announcement to introduce live shopping broadcasts in the UK, following successful trials in China.”
The experiment will see it bring live shopping shows to Western countries following successful livestreams in China.