By Maitane Sardon
Zara Owner Inditex on Wednesday reported first-half sales which beat market forecast, thanks to a strong performance both online and in stores.
The Spanish fashion giant, which also owns Bershka, Massimo Dutti and Pull&Bear, said that net profit for the six months ended July 31 surged to 2.51 billion euros($2.70 billion), from EUR1.79 billion last year.
Sales came to EUR16.85 billion, topping the EUR14.85 billion it reported for the same period a year earlier. Analysts had forecast first-half sales of EUR16.68 billion, according to a poll of estimates compiled by FactSet.
Earnings before interest and taxes climbed to EUR3.16 billion in the first half from EUR2.43 billion, while earnings before interest, taxes, depreciation, and amortization increased to EUR4.66 billion from EUR4.03 billion.
The operating margin increased to 18.8% from 16.4%, while the gross margin was up at 58.2% Inditex said.
For the year, Inditex continues to expect a stable gross margin plus or minus 50 basis points.
Inditex’s results come as the company seeks to maintain its edge over rivals in a challenging business environment. On Tuesday, Primark owner AB Foods upped its forecast for 2023 and said its sugar and clothing-retail divisions should be even more profitable next year despite an arduous macroeconomic backdrop. Stockholm-based H&M Hennes & Mauritz is set to report sales on Friday.
Write to Maitane Sardon at maitane.sardon@wsj.com
This article was originally published by Marketwatch.com. Read the original article here.
