Spanish fashion retailer Zara's Q1 FY21 sales jump 50% to €4.9 bn

09 Jun '21

2 min read

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Spanish fashion retailer Inditex, which owns Zara, has posted 50 per cent sales growth to €4.9 billion in its first quarter (Q1) FY21, ended on April 30, 2021, compared to the sales of €3.3 billion in the corresponding quarter of previous fiscal. The group’s net income for the reported quarter rose to €423 million (Q1 FY20: loss €409 million).

“Our differentiation and strategic transformation towards a fully integrated, digital and sustainable model continues to bear fruit supported by the commitment displayed by all the people who work at Inditex,” Pablo Isla, Inditex’s executive chairman, said in a press release.

Gross profit for Q1 FY21 rose to €2.9 billion (€1.9 billion), while EBITDA increased to €1.2 billion (€484 million). Inditex’s operating income for the quarter grew to €569 million (loss: €508 million).

According to the group, the initial spring/summer collections were very well received by their customers. Throughout Q1 FY21, store sales have progressively improved and online sales in constant currency grew 67 per cent.

“Inditex continues to be very active in differentiating its retail space. The growth of space in Q1 FY21 is in line with management's expectations. In Q1, openings have been carried out in 21 markets. At the end of the period Inditex operated 6,758 stores,” the group added. “The recovery continues to gain momentum. Store and online sales in constant currency between May 1 and June 6, 2021 increased 102 per cent versus the same period in 2020 and by 5 per cent versus the same period in 2019.”

Fibre2Fashion News Desk (JL)

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