Inditex, the Spanish fashion retailer behind Zara, posted better-than-expected first-half results on Wednesday, with sales rising 24.5% to €16.7 billion ($17.39 billion) in the six months to July 31, and net profit coming in at €1.79 billion, up by 41%.
The company’s gross margin improved by 2.5 percentage points to 62.1% while its digital sales represented 25.5% of total revenues.
Inditex said its performance was driven by strong demand for its new summer collections, particularly in key markets such as Spain, the United States, and China.
The company also said that its new AW23 collection has started well, with early sales data showing that customers are responding positively to the new designs and trends.
Inditex’s results come as the fashion industry continues to navigate a number of challenges, including rising inflation, supply chain disruptions, and the war in Ukraine.
However, the company’s strong performance suggests that it is well-positioned to weather these challenges and continue to grow in the coming months.
The company’s shares rose by 3.5% in early trading on Wednesday, following the release of the results.
**Key highlights from Inditex’s H1 results:**
* Sales up 24.5% to €16.7 billion
* Net profit up 41% to €1.79 billion
* Gross margin improved by 2.5 percentage points to 62.1%
* Digital sales represented 25.5% of total revenues
* AW23 collection has started well
**What analysts are saying:**
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