Zara owner Inditex reported strong sales growth in its latest six months with key brands all seeing goods demand for spring and summer collections.
Revenues at the Spanish retailer rose by 7.2% to €18.1 billion in the half year to end July 2024, with that and better gross margins feeding through into a 7.5% rise in gross profit to €7.5 billion.
Underlying profits [EBITDA] rose 8% to €5 billion and net income by 10% to €2.8 billion.
Zara is the largest brand with 1,792 outlets, and its sales in the half year to July rose by 5.4% to €13 billion.
Óscar García Maceiras, chief executive, said: “Our fully integrated model continues to generate opportunities for profitable growth across all concepts, regions and channels.
“The Spring/Summer collections have been very well received by our customers.
“Sales grew 7.2%, to reach €18.1 billion, showing very satisfactory development both in stores and online. Sales were positive in all concepts. Sales in constant currency grew 10.2%.”
Inditex, which owns Pull & Bear, Massimo Dutti, Oysho, Bershka and Stradivarius as well as Zara, added that autumn/winter collections are also selling well.
Stores and online sales in constant currency rose by 11% year-on-year between 1 August and 8 September.
In total, the group had 5,667 stores at the end of the interim period and reiterated it intended to add 5% gross to its footage over 2024- 2026.
This extra space is expected to contribute positively to sales in this period, it said, in conjunction with a strong evolution of online sales.
Inditex added it is also implementing a €900 million, two-year logistics expansion plan to utilise the most up-to-date technology.
Net cash at the half year totalled €10.9 billion with €1.9 billion of free cash generated in the first half.