Zara dad or mum agency posts revenue bounce after robust gross sales
Z
ara proprietor Inditex has revealed a pointy rise in earnings on the again of robust gross sales of its spring-summer product strains.
The world’s largest style enterprise, which additionally owns the Pull & Bear and Bershka manufacturers, noticed pre-tax earnings bounce by 39% to three.3 billion euros (£2.85 billion) over the primary half of 2023.
It got here because the retail agency additionally slowed down worth will increase to clients after efforts to cut back value inflation.
Inditex advised shareholders on Wednesday that gross sales grew by 13.5% over the half yr to 16.9 billion euros (14.6 billion), with progress each in shops and on-line.
It stated this included a 13.1% enhance in gross sales at Zara to £12.4 billion euros (£10.7 billion).
Oscar Garcia Maceiras, chief government officer of Inditex, stated: “The 2023 H1 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.”
Aarin Chiekrie, fairness analyst at Hargreaves Lansdown, stated: “Sales growth continues to outpace higher operating costs.
“It’s a testament to the success of the group’s optimisation strategy, which prioritises closing smaller stores to focus on bigger ones in prime locations.
“That tactic’s set to continue, with floor space expected to grow 3% this year despite a much lower number of open stores.
“It’s bold moves like that which are helping the group to maintain its impressive margins.”