Zara owner reports record sales to give the fast fashion giant a profit boost despite tough times on the High Street
- Inditex, owner of a number of fashion brands, announced an increase of the net result of 3%
- Net sales amounted to € 12.03 billion, a record for the world's largest clothing retailer
- The group's like-for-like sales were higher in all regions, including Europe
Grace Gausden, because this is money
The owner of the high street fast fashion company Zara has reported rising profits and record sales.
Despite currency pressures and difficult conditions for retailers, the Spanish group Inditex announced a 3% increase in the net result to € 1.4 billion (£ 1.2 billion) for the six months to 1 July period, giving the company the best half-year results ever.
Shares in Inditex, which also own Massimo Dutti and Pull & Bear among a number of other brands, have increased by more than 2 percent since the progress report was unveiled.
Zara is owned by the Spanish group Inditex, which also owns other large high street fashion brands such as Massimo Dutti, Pull & Bear and Bershka.
Net sales also broke the previous record of € 12 billion (£ 10.7 billion) for the first time with € 12.03 billion (£ 10.7 billion).
Inditex, the world's largest clothing retailer, said that the group's like-for-like sales were up 4 percent and higher in all regions, including Europe and the UK. However, this is a reduction in growth of 6 percent last year.
It said that autumn collections in the fall / winter & # 39; well received & # 39; and estimate that autonomous sales growth in the second half has so far risen to between 4 and 6 percent.
This is despite the fact that many customers are driven away from the shopping street because of the difficult economy, because people have less extra money to spend on non-essential items.
Pablo Isla, chairman and chief executive of Inditex, said: "The strong results in the first half are the result of solid sales and operational performance, resulting from the unique strength of the group's integrated and sustainable business model. # 39;
The stronger euro was expected to take its toll, but the profit of the group continued to increase, with the gross profit margin slightly increasing from 56.4 percent to 56.7 percent.
The group reported record profits despite the difficult economy that drove many customers away from the main street.
Many of Inditex's products are made in the euro zone, but it makes more than half of its sales outside the currency block.
The strong euro certainly had an impact, as shown by the total sales figures with local currencies with an impressive 8 percent.
The high street empire, employing more than 170,000 people, opened stores in 44 markets in the first half and brought the total number of outlets to 7,422 out of 96 markets.
It has also recently stated that all its brands will be available online worldwide by 2020.
It currently has online sales in 49 of its 96 markets.