Who is the parent company of Zara

Zara parent company Inditex shines with profit growth

The foray into the Internet has paid off. For the year as a whole, sales are expected to grow by around five percent.

For the Zara parent company Inditex, the foray into the Internet at the beginning of the year has paid off. As the company announced on Wednesday, it was able to increase its sales in all regions and across all group brands. The Spaniards, who like their Swedish competitor H&M recently suffered from the strong competitive pressure in the industry, have already opened numerous new online portals this year.

Although the bad weather slowed demand in the second half of the quarter, management is sticking to its forecast for the year. Accordingly, sales growth on a comparable area should reach four to six percent.

In the first quarter, which runs from February to April, sales of the group, which also includes Massimo Dutti, Zara Home, Bershka and, more recently, Pull & Bear, climbed by five percent to 5.92 billion euros. That is a new record. The net profit increased by 9.9 percent to 734 million euros. This slightly exceeded market expectations of 731.5 million euros. The gross margin increased to 59.5 percent compared to 58.9 percent in the previous year. The EBIT margin was 16.5 percent after 15.1 percent.

For the current second quarter, Zara's parent company expects store and online sales in local currency to have risen by 9.5 percent so far.

(ag)