Inditex 9-month profit jumps as increases fashion prices

MADRID (Reuters) – Zara owner Inditex (ITX.MC) on Wednesday closed its accounts with sales growth that showed resilience amid weaker global consumer demand for clothing. It announced a 24% increase in net profit in the first nine months of the year. .

The world’s largest fashion retailer’s in-store and online sales fell slightly faster than analysts had expected after raising prices by more than 5% from the spring to forecast inflationary pressures in some markets, year-on-year increased by 19%.

Net income reached €3.1 billion ($3.3 billion) from February to October in the first year under the leadership of Marta Ortega, daughter of founder and owner Amancio Ortega, as Non-Executive Chairman Did.

Known for its ability to quickly bring the latest designs to consumers thanks to its flexible sourcing, Inditex recently made emotional purchases for special events at a time when the cost of living crisis threatens non-essential spending. To motivate you, we offer more “high fashion” Zara items. A company source said.

Such an approach allows Inditex to sell more expensive items and attract shoppers from the upscale segment of the market, according to company sources and analysts.

According to Inditex, sales grew 12% year-on-year from early November to December 8, but at a slower pace than the previous month due to a weaker consumption environment.

The company’s second-quarter sales increased 16% year-over-year.

Reporting by Corina Pons, Editing by Inti Landauro

Our standards: Thomson Reuters Trust Principles.

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