Inditex unphased by profit fall← Back
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Industria de Diseño Textil, S.A. better known as Inditex, has announced the results for this year’s first quarter. The fashion retail group, founded in 1975, owns the labels Zara, Pull & Bear and Massimo Dutti amongst others, counting 6,393 stores worldwide.
Net profits for the group fell 7.3% to 406 million euros in the first quarter, in contrast to 438 million euros for the same period last year. The dip in profits can be accounted for by the fact that a third of Inditex’s sales are made outside Europe; the group’s earnings were impacted by the euro becoming much stronger in relation to other currencies over the past year.
Inditex may have been subject to this fall in profits, the largest dip in five years, but it has also reported a strong growth as sales increased by 4%, to 3.75 billion euros. Inditex thereby performed better than predictions made by analysts. This comes as a result of the European markets regaining momentum, amongst which Inditex’s home country, Spain, that can be accredited for generating one fifth of Inditex’s sales.
The Swedish fashion retailer Hennes & Maures, one of Inditex’s main rivals, similarly reported strong growth for the quarter, also benefitting from recovery across European markets.