Zara rebound helps Spanish fashion retailer Inditex gain momentum

15 Sep '21

2 min read

Pic: Shutterstock

Inditex Group, the parent company of Zara, has reported 49 per cent sales jump to €11.94 billion in the first half (H1) of FY21 ended on July 31, 2021, over the same period of previous fiscal. The online sales continued its strong growth with an increase of 36 per cent against H1 of FY20 and 137 per cent over the same period of 2019, according to the company.

“(This performance) is the result of the commitment displayed by everyone at the company and their continued focus on delivering top creative and quality fashion. Thanks to all of them we are reaping the benefits of the strategic and sustainable transformation in our unique business model,” Pablo Isla, Inditex’s executive chairman, said in a press release.

By brand, sales of Zara (Zara and Zara Home) surged to €8.5 billion (€5.5 billion), while Pull&Bear’s sales rose to €786 million (€578 million). Moreover, the group’s other brand’s also recorded increase during the first half: Massimo Dutti €607 million (€490 million), Bershka €919 million (€692 million), Stradivarius €782 million (€502 million), Oysho €305 million (€208 million), and Uterqüe €48 million (€31 million).

“The Spring/Summer collections were very well received by our customers,” the Spanish fashion retailer said. “Throughout H1 FY21 store sales progressively improved and online sales continue growing strongly.”

Gross profit for the six-month period climbed to €6.9 billion (€4.5 billion), while EBITDA increased to €3.1 billion (€1.5 billion). Inditex’s operating income grew to €1.7 billion compared to operating loss of €198 million during H1 FY20. Net income expanded to €1.3 billion (loss: €195 million).

“The Autumn/Winter collections have been very well received by our customers. Store and online sales between August 1 and September 9, 2021, increased 22 per cent versus the same period in 2020 and 9 per cent versus the same period in 2019,” the company further said. “On September 30, Zara Man will launch the sports collection Zara Athleticz, available online and in selected stores.”

Fibre2Fashion News Desk (JL)

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