Inditex, the Spanish group which owns fashion retailers including Zara and Massimo Dutti, revealed revenue jumped 13.5% year-on-year to €16.9bn (£14.6bn) for the first half, boosted by strong sales of summer clothing.
Gross profit for the six months, between 1 February and 31 July, rose 14.1% to €9.8bn (£8.5bn), compared to the same period last year and EBITDA increased 15.7% to €4.7bn (£4bn).
Net income grew 40.1% to €2.5bn (£2.15), with “strong cash flow generation” according to the group. And its net cash position increased 14.1% to €10.5bn (£9.03bn), compared to the same period last year.
For its flagship brand, Zara, the world’s largest apparel retailer revealed that sales lifted 13.1% year-on-year to €12.3bn (£10.6bn). Zara, which sells both mens and womens fashion, as well as homeware, makes up 73% of Inditex’s total revenue.
“The 1H2023 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.”
Inditex CEO, Oscar Garcia Maceiras
Marta Ortega, daughter of founder Amancio Ortega, took the helm of the company in November 2021 as chairwoman. But despite claims of nepotism at the time, the business has gone from strength to strength under her leadership. She had previously been heading up the creative team at Zara.
For the second half of the year, Inditex said Autumn/Winter collections have been well received by customers. Whilst store and online sales in constant currency between 1 August and 11 September 2023 have increased 14% compared to the same period last year.
OUTLOOK
Inditex says it continues to see strong growth opportunities, with its key priorities to:
Improve the fashion proposition
Enhance the customer experience
Increase its focus on sustainability
Preserve the talent and commitment of its people
The group said it is also developing “several initiatives in all key areas” for the coming years to help meet these objectives. “The creativity of our teams and the flexibility of the business model in conjunction with in season proximity sourcing allows a swift reaction to customer demand” the retailer said in a market update.
Inditex operates in 213 markets, and it said it expects to see “increased sales productivity” in its stores going forward.
NEW LOOK STORES
Zara has been opening new stores with a fresh look, most notably its brand new space on the Champs Elysée in Paris, as well as other major cities such as Madrid and London. With a minimalist, paired back feel and barely any inventory on the shop floor, it looks more high end than high street and taps into the wider trend for mainstream fashion brands behaving more like luxury brands.
We’ve seen the likes of Primark tap into this trend by offering luxurious in-store experiences such as nail bars, blow dry bars and custom t-shirt printing.
And H&M’s new store in Berlin is another great example of this. With a big focus on rental and resale, not much product, beautiful storytelling around the products, considered visual merchandising and the most extraordinary café, it would give Dior a run for its money in the luxury stakes.
Keep up-to-date with the latest business news and analysis over on Matt Haycox Daily. For all the latest news, insights and strategy, sign-up to the Matt Haycox weekly newsletter, below.
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AUTHOR
Emily Seares
Emily Seares has over 15 years of experience as a journalist and editor, specialising in fashion, retail, luxury, and business transformation. She is regularly by-lined in national newspapers and magazines and has an extensive network of industry contacts. Emily has spoken at international conferences, provided live interviews as a fashion expert on the BBC, and delivered regular lectures at a prestigious British university. She has received recognition for her contributions to the industry and was honoured in British VOGUE's Powerlist Top 100.
Navigating the business world can be both thrilling and challenging. It offers exciting opportunities, but it can also come with its share of stress. As
In business, long-term growth and stability require a solid financial foundation. Whether you’re planning major expansions, investing in high-cost equipment, or simply aiming to sustain
Sales and profits surge at Zara owner Inditex
Inditex, the Spanish group which owns fashion retailers including Zara and Massimo Dutti, revealed revenue jumped 13.5% year-on-year to €16.9bn (£14.6bn) for the first half, boosted by strong sales of summer clothing.
Gross profit for the six months, between 1 February and 31 July, rose 14.1% to €9.8bn (£8.5bn), compared to the same period last year and EBITDA increased 15.7% to €4.7bn (£4bn).
Net income grew 40.1% to €2.5bn (£2.15), with “strong cash flow generation” according to the group. And its net cash position increased 14.1% to €10.5bn (£9.03bn), compared to the same period last year.
For its flagship brand, Zara, the world’s largest apparel retailer revealed that sales lifted 13.1% year-on-year to €12.3bn (£10.6bn). Zara, which sells both mens and womens fashion, as well as homeware, makes up 73% of Inditex’s total revenue.
Marta Ortega, daughter of founder Amancio Ortega, took the helm of the company in November 2021 as chairwoman. But despite claims of nepotism at the time, the business has gone from strength to strength under her leadership. She had previously been heading up the creative team at Zara.
For the second half of the year, Inditex said Autumn/Winter collections have been well received by customers. Whilst store and online sales in constant currency between 1 August and 11 September 2023 have increased 14% compared to the same period last year.
OUTLOOK
Inditex says it continues to see strong growth opportunities, with its key priorities to:
The group said it is also developing “several initiatives in all key areas” for the coming years to help meet these objectives. “The creativity of our teams and the flexibility of the business model in conjunction with in season proximity sourcing allows a swift reaction to customer demand” the retailer said in a market update.
Inditex operates in 213 markets, and it said it expects to see “increased sales productivity” in its stores going forward.
NEW LOOK STORES
Zara has been opening new stores with a fresh look, most notably its brand new space on the Champs Elysée in Paris, as well as other major cities such as Madrid and London. With a minimalist, paired back feel and barely any inventory on the shop floor, it looks more high end than high street and taps into the wider trend for mainstream fashion brands behaving more like luxury brands.
We’ve seen the likes of Primark tap into this trend by offering luxurious in-store experiences such as nail bars, blow dry bars and custom t-shirt printing.
And H&M’s new store in Berlin is another great example of this. With a big focus on rental and resale, not much product, beautiful storytelling around the products, considered visual merchandising and the most extraordinary café, it would give Dior a run for its money in the luxury stakes.
Keep up-to-date with the latest business news and analysis over on Matt Haycox Daily. For all the latest news, insights and strategy, sign-up to the Matt Haycox weekly newsletter, below.
Subscribe To Matt's Newsletter
The News You Need To Read Along With Tips, Strategies And Advice From An 8 Figure Business Owner. In Your Inbox Every Friday!
By submitting your details you agree to receive communications and agree to the privacy policy terms. You can opt out at anytime.
Share:
AUTHOR
Emily Seares
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