Inditex reports H1 FY20 sales of €8 bn

17 Sep '20

2 min read

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Inditex Group, a Spanish fashion retailer, has reported 37 per cent sales decline to €8.0 billion in its first half (H1) of fiscal 2020 ended on July 31, 2020, compared to the sales of €12.8 billion in the same period previous fiscal. During the six months period, group incurred a net loss of €198 million compared to net income of €1.5 billion in H1 FY19.

According to company’s report, total sales were boosted by strong online growth, which reached 74 per cent year on year during H1 FY20.

“The recovery and strong performance are due to the hard work, engagement and creativity of everyone in Inditex. I am particularly pleased with our online sales growth, which demonstrates the critical importance of our strategy to integrate store and online. This is a cornerstone of our unique business model,” Pablo Isla, Inditex’s executive chairman, said in a press release.

Gross profit for the reported period decreased to €4.5 billion (€7.2 billion). Operating expenses registered a loss of €3.0 billion (€3.8 billion).

Sales at Zara during H1 FY20 fell to €5.5 billion (€8.8 billion). Pull&Bear sales slipped to €578 million (€873 million). Massimo Dutti’s sales dropped to €490 million (€844 million). While, the sales of Bershka €692 million (€1.0 billion), Stradivarius €502 million (€776 million), Oysho €208 million (€301 million) and Uterqüe €31 million (€52 million) all plunged during the first half.

As many as 87 per cent of group’s stores were closed during the month of May, but currently it has managed to open 98 per cent of its stores around the world with limits on capacity and restricted opening hours in specific markets. However, store & online sales for the second half period between August 1 and September 6, were 11 per cent down.

Fibre2Fashion News Desk (JL)

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