Zara owner Inditex posts jump in H1 profit, sales

Spanish fashion giant Inditex has reported robust revenue growth and a 40 percent increase in profit in the first half, ahead of expectations.

The group, whose portfolio includes brands Zara, Massimo Dutti, and Pull & Bear, generated revenue of 16.9 billion euros in H1, up 13.5 percent from the same period a year earlier, with the group citing “very satisfactory development both in stores and online”.

All the group’s brands posted double-digit growth, with Oysho and Massimo Dutti the standout performers, reporting growth of 18.3 percent and 16.8 percent, respectively.

Zara, which is by far the group’s biggest brand, saw sales increase 13.1 percent to 12.36 billion euros.

Index profit ahead of expectations

The company’s net profit jumped by 40.1 percent to 2.5 billion euros in the first half.

Inditex CEO Óscar García Maceiras said: “The H1 2023 results demonstrate that the talent of our teams continues to consolidate the improvements in the performance of our business model.

“The ongoing commitment to creativity, quality and customer experience, as well as the determined progress in sustainability, drives a strategy that is taking our business to the next level.”

Inditex also managed to improve its inventory thanks to a “robust” operating performance and the normalisation in supply chain conditions, with levels 6.9 percent lower as of July 31 compared to a year earlier.

Inditex added that its spring/summer collections have been “very well received” by customers.

Looking at more recent trading, it said autumn/winter collections have also been well received, with constant-currency store and online sales between August 1 and September 11 up 14 percent year-on-year.