Record sales demonstrate Inditex’s expansion is a great success
Inditex is riding a wave of expansion, with the latest market it’s washing into being Brazil. The company recently launched its flagship Zara brand online in the country, and has seen staggering success. Brazil is not the only location that has demonstrated strong demand for Inditex’s fast-fashion, high-street first, style – all around the globe, the Spanish clothier is outperforming. These strong moves are having a major impact on Inditex’s top line, as the company recently announced that it had seen record sales for the first quarter of the year.
Inditex’s share price has appreciated by 12% so far this year
Source: Yahoo Finance
In the three months ending April 30, Inditex said that net sales rose by 5% year on year to a new high of 5.9 billion euros. At the same time, the company outperformed on profit, seeing a 10% rise against the same period in the previous year to 734 million euros. The first few weeks of the second quarter have seen Inditex capitalise on that success, as sales have increased again – in-store and online sales taken together are up 9.5% in that period against the comparable one.
In an announcement last Wednesday, Inditex noted that this strong performance was underpinned by growth in every region – and, crucially, the continued success of the company’s push to get selling online all around the world. Pablo Isla, the company’s chairman and CEO, said that these results demonstrate “the solidity of the company’s model, whose profitability and cash flow generation continues to grow owing to the group’s commitment to customer-driven quality fashion.”
He also highlighted the “strong momentum in the digital transformation of the integrated store and online sales platform and in sustainability as a key pillar of the company’s strategy.”
Dominion holds Inditex in its Global Trends Luxury Fund.
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