MADRID: Zara owner Inditex posted a 24% increase in net profit for the first nine months of its fiscal year, as price rises helped offset weakening global demand for clothing.
The world’s biggest fashion retailer’s store and online sales rose 19% from a year ago, slightly faster than analysts had expected. Price rises of 5% or more across some ranges since the spring helped drive sales, analysts said.
The company, whose brands also include Massimo Dutti and Bershka, said its net profit rose to 3.1 billion euros ($3.3 billion) from 2.5 billion euros a year ago during the first nine months of the year.
Net profit for the quarter was up 6 percent to 1.3 billion euros, in line with market forecasts according to IBES data from Refinitiv.
Shares in Inditex were up 2.8% at 12:30 GMT.
The company has outperformed some rivals since Marta Ortega, the daughter of founder-owner Amancio Ortega, took the helm as non-executive chair in April.
“The sales outperformance may reflect the quality of the product design and offering as well as the more attractive price point compared to peers as price increases appear to be less than the wider market,” Deutsche Bank analyst Adam Cochrane said.
Comments
Comments are closed for this article.