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Inditex, the world’s largest clothing retailer, has confirmed a recovery from the pandemic by recording higher sales, profits, and cash generations than recorded before Covid-19’s adoption.
Between May and July, the company’s revenue reached € 690 million, surpassing the record highs recorded during the same period in 2019, supported by a recovery in consumer demand and increased online sales.
According to the company’s results released Wednesday, three-month net profit reached a record of 850 million euros and cash reserves were 6.49 billion euros in July 2020, two years ago. Increased from 6.73 billion euros to 8 billion euros.
The company, best known under the Zara brand, was hit hard by the outbreak of a pandemic. From time to time, 95 percent of the store was closed. It amortized inventory of € 287 million in March last year and reported a month later its first loss as a public company of € 409 million. In the fourth quarter of last year, we were disappointed as the infection rate rose again and many stores closed again.
However, during the crisis, the group strengthened online sales and used tracking technology to raise many online orders from stores, even when customers were closed. Inditex uses an integrated inventory system for physical and online stores.
In Wednesday results, the group said online sales in local currency for the six months to the end of July increased by 36% in the same period of 2020 and 137% in the same period of 2019. More than a quarter of the whole year. In 2019, online accounted for only 14% of total sales.
The group said it plans to open or expand its flagship store Zara in Barcelona, Cairo, Guangzhou and elsewhere this year, with other stores in London, Paris and Cape Town. Next year, we plan to integrate the Uterque brand within Massimo Dutti. As of the end of July, the Group has 6,654 stores worldwide.
Inditex bounces back as consumer demand recovers Source link Inditex bounces back as consumer demand recovers