The fashion giant Inditex is starting the rest of the year with a noticeable recovery. After sales in the first business quarter (until the end of April) increased by 36 percent to EUR 6.74 billion in the previous year due to corona-related lockdowns, things continued to improve in the first few weeks of the current quarter. The spring and summer collections were very well received, said the Spaniards on Wednesday, who, in addition to the fashion chain Zara, also own brands such as Massimo Dutti, Pull&Bear and Bershka. From the beginning of May to June 5, currency-adjusted revenues increased by 17 percent compared to the previous year.
The company announced that four stores in China are currently still temporarily closed. 67 shops were affected by lockdowns in the People’s Republic in the first quarter. In total, the company operated 6,423 stores worldwide at the end of the three-month period.
Profit grows strongly
Inditex also increased its profit significantly. Before interest and taxes, a value of 1.03 billion euros was booked in the months from February to April, 82 percent more than a year ago. The costs have risen less than sales, it said. In stores, buyers hit harder again, while online sales fell slightly compared to the strong previous year.
The bottom line is that Inditex made a profit of 760 million euros, also around four fifths more than a year earlier. Inditex booked a charge of 216 million euros for the temporary cessation of business in Russia and Ukraine. (dpa)