ARTEIXO (dpa-AFX) – The clothing group Inditex has joined the ranks of European fashion brands with well-run businesses. The spring-summer collections were very well received by customers, the company announced on Wednesday in Arteixo, Spain. Sales and operating profit of the company, which includes brands such as Bershka, Massimo Dutti, Oysho, Pull & Bear, Stradivarius and Zara, rose sharply in the first half of the financial year (until the end of July). And management is also satisfied with the start to the second half of the year. The shares fell by a good one percent in the morning in a weak overall market after rising to their highest level since 2017 the day before. In 2023 they have already increased by more than 40 percent.
The current autumn-winter collections were well received, it was said. Sales increased by 14 percent year-on-year at constant exchange rates in the first weeks of the third fiscal quarter, specifically from August 1 to September 11.
Unlike many smaller retailers and shops, the large corporations are currently managing to achieve higher prices, which customers accept in view of the ever-present inflation. But the weaker dollar, as well as lower freight and material costs, are also giving tailwind to companies such as HUGO BOSS, Marks & Spencer (MarksSpencer), Next and Primark parent AB Foods (Associated British Foods).
In the first six months of the financial year ending at the end of January, Inditex increased sales by 13.5 percent to almost 16.9 billion euros compared to the same period last year. Based on constant exchange rates, it was an increase of 16.6 percent.
Sales before interest, taxes, depreciation and amortization remained at around 4.7 billion euros, almost 16 percent more than the year before. Inditex also performed slightly better than analysts expected. The operating margin increases from 27.1 to 27.7 percent.
The bottom line is that Inditex earned 2.5 billion euros, 40 percent more than the year before. Among other things, a significantly better financial result helped./lew/mis/stk
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