Fast fashion giant Zara has tasted the sweetness of high-end.
According to fashion business news, in the three months ended April 30, the sales of Inditex, the parent company of Zara, rose 36% year-on-year to 6.7 billion euros, exceeding analysts’ expectations of 6.2 billion euros, mainly due to the strong physical retail. Recovery, e-commerce sales recorded a 6% decline.
During the reporting period, the gross profit margin of Inditex Group further increased to 60.1%, a new high in the past 10 years, the EBIT almost doubled to 1.03 billion euros year-on-year, and the net profit rose by 80% to 760 million euros. As of the end of the reporting period, the number of Inditex Group’s global stores was approximately 6,423, a net decrease of 654 from 6,758 in April last year.
Óscar García Maceiras, the new CEO of Inditex Group, said that due to the impact of the epidemic, 67 stores of its brands in China were temporarily closed in the first quarter, but they performed positively in other major markets around the world. With the improvement of the epidemic, the business of Zara and other brands in China has basically returned to normal, and only 4 stores remain closed. As of June 5, Inditex Group’s sales recorded an organic increase of 17%.