Inditex reveals 10.1 percent increase in profit amid slowing sales growth

(MENAFN) Spanish retailer Inditex, the parent company of Zara, announced a 10.1 percent increase in net profit for the first half of the fiscal year, reaching 2.8 billion euros (USD3.1 billion). This boost in profitability came alongside a 7.2 percent rise in net sales, which amounted to 18.06 billion euros (USD19.9 billion), up from 16.85 billion euros (USD18.6 billion) in the same period the previous year. The sales growth was driven by strong demand for its spring-summer collections, though it was slower compared to the 13.5 percent growth observed in the first half of fiscal 2023.

Despite the slower pace of overall sales growth, Inditex reported continued success with its fall-winter collections. The group noted an 11 percent increase in both in-store and online sales in constant currency from August 1 to September 8, compared to the same period in 2023. The positive sales performance underscores the brand’s ongoing appeal, despite facing stiff competition from budget retailers such as Shein and Primark.

CEO Oscar Garcia Maceras expressed confidence in Inditex’s growth prospects, attributing the company’s success to its distinctive business model. He highlighted that the strong performance in online sales is supported by the operational efficiency of its physical stores, reinforcing the company's competitive edge in the global fashion market. 

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