PARIS – Showing continued strength, Zara parent company Inditex reported first-half sales rose 10.2 percent at constant currency, or 7.2 percent on a reported basis, continuing the momentum from the first quarter of the year.
That puts the number slightly ahead of analysts expectations, which had seen them ringing in at 7 percent. Sales reached 18.1 billion euros in the six months ended July 31.
There’s continued momentum going into the next season. Sales between Aug. 1 and Sept. 8 gained 11 percent at constant currency over the same period in 2023.
“The design and quality of our fashion proposition and the experience we offer our customers are, together with the efficiency and increasing sustainability of our operations, the keys to the solidity of these results. Our fully integrated model continues to generate opportunities for profitable growth across all concepts, regions and channels,” Inditex chief executive officer Óscar García Maceiras said in a statement.
“Inditex has executed very well in recent years, and has benefited from its strong design/buy set up and quick response business model,” said RBC analyst Richard Chamberlain in a note following the release.
The fast-fashion behemoth operates Bershka, Oysho, Pull&Bear, Stradavarius, Massimo Dutti and Zara Home in addition to its flagship Zara brand.
Gross profit increased 7.5 percent to 10.5 billion euros in the first half.
Inditex also noted that it’s holding about 1.7 percent less inventory than the same time period in 2023, which it credited to the “robust operating performance.”
The company continued with some targeted shutterings, closing 47 Zara stores, 33 Oysho stars and 16 Zara Home stores, while opening 18 Pull&Bear locations. However, it added sales channels in 34 markets, such as launching online in Turkey as it continues to strengthen its omnichannel positioning.
While still rolling out its new design concept worldwide, it is increasing store space, and expects a 5 percent bump in gross space by the end of 2026.
The new store design for Zara rolled out in Lisbon; Liverpool; Riyadh; Thessaloniki, Greece and Bangalore, India, among other locations.
The company is looking to replicate the success of its live shopping channels in China, and will roll out the concept to Spain, France, Italy, Germany, UK, Ireland, The Netherlands and Canada and the U.S. soon.
Zara’s Pre-Owned secondhand platform will open in the U.S. after being trialed in the U.K. and Europe. That will be operating by the end of October.
