11 September 2024
Zara-Owner Inditex Extends Sales Gains, Bucking Retail Trend
BoF
Inditex SA sales jumped at the start of the third quarter as the Zara owner’s popular fashion ranges and nimble operations helped it cope better with the poor weather and choppy consumer demand dogging rivals.
Shares rose after the world’s biggest publicly traded clothes retailer reported an 11 percent growth in sales, excluding foreign-exchange movements, for the five weeks to Sept. 8. This was higher than growth in the second quarter, the company said in a statement on Wednesday.
Unseasonable weather across various parts of Europe in early June kept shoppers away from retailers, leaving many with unsold stock piles. Inditex rival Hennes & Mauritz SE cited that as a reason for its poorer sales performance. Eurostat data across the eurozone showed general retail sales fell 0.3 percent in July after months of growth.
Inditex — which also owns the brands Massimo Dutti and Pull & Bear — has avoided the pitfalls of rivals as its tightly managed supply chain has allowed it to quickly get fresh products in and out of stores, making it more agile on both fashion trends and potential headwinds. Europe was the company’s strongest region in the latest period with solid growth, particularly in its home market of Spain. Sales were softer in Asia and the US — a key expansion market for the retailer.