Inditex Q1 sales up 2% to €5.7 billion

Growth was underpinned by solid business performance and same-store sales growth across all geographies. Gross margin improved by 68 basis points from the same quarter a year ago to 58.9 per cent. Net profit reached €668 million in first quarter of fiscal 2018, up from €654 million in the same period a year prior.

The company's revenue reached a new first-quarter record of €5.7 billion, during a period marked by significant exchange rate effects. The group launched online sales for Zara in Australia and New Zealand during the quarter. Retail space kept growing, while the company continued differentiating, optimising and upgrading its store portfolio.

During the first three months of fiscal 2018, the group’s brands opened new stores in 36 markets, while continuing with the group’s strategy of absorbing smaller-sized units and expanding and refurbishing others, closing the period with 7,448 stores. Refurbishments and investments are mainly connected to the introduction of the latest technologies related to the group’s integrated store and online model.

"The strength of the integrated store and online model, bolstered by continued innovation, is driving solid growth and notable job creation," said chairman and CEO, Pablo Isla. (RR)

Fibre2Fashion News Desk – India