Zara owner extends lead as world’s biggest fashion company
The owner of Zara has extended its lead over H&M as the world’s biggest fashion company.
Inditex, which also owns brands such as Pull & Bear and Bershka, recorded a 40% increase in profit during the six months to July 2023 compared to the same period the year before.
The Spanish fashion group posted a net income of €2.5bn (£2.15bn) between February and July, ahead of investor expectations.
This was despite Inditex opting to slow the rate of price increases to customers.
The group has benefitted from being able to deliver fashionable trends quickly from nearby suppliers, enabling it to widen its gap to closest rival H&M.
Inditex said its sales had risen to €16.9bn (£14.6bn), up 13.5% against the same period of 2022. The group reported a gross margin of over 58.2%.
Óscar García Maceiras, Inditex chief executive, said: “The […] results demonstrate that the talent of our teams continues to consolidate the improvements in the performance of our business model. The ongoing commitment to creativity, quality and customer experience, as well as the determined progress in sustainability, drives a strategy that is taking our business to the next level.”
Since the period end, the group said that its autumn-winter collections have so far been very well received by customers. Inditex said sales in constant currency between 1 August and 11 September 2023 increased by 14% versus the same period in 2022.