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Zara owner Inditex posts record sales and profits

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The Spanish owner of Zara has reported sales and profits at record highs, as it continues to bounce back from a hit at the start of the pandemic.

Inditex said sales and net profits were higher than pre-pandemic levels in the three months to the end of October.

Quarterly sales were 21 per cent higher than the same period in 2020 and 10 per cent higher than the comparable pre-pandemic quarter in 2019.

Inditex, which is the largest international clothing retailer, declared that the daughter of the group’s founder will be stepping into the role as chair next year.

Marta Ortega will replace Pablo Isla, who has been chairman of Inditex since 2011, on 1 April.

Óscar García Maceiras was also announced as the group’s new chief executive, with immediate effect. García Maceiras has been with the brand since just March.

Inditex’s stellar sales “confirm the significance of extending, deepening and developing our integrated business model, the company’s key differentiating characteristic,” García Maceiras said.

Online sales at brands such as Zara and Bershka have skyrocketed during the pandemic.

E-commerce sales were up 28 per cent for the nine months to the end of October, when compared to the same period in 2020. Online sales had more than doubled when compared to the comparable period in 2019.

Across the nine month period, the retailer reported €19.33bn in sales, a 37 per cent increase on the same period in 2020. Its net profit stood at €2.5bn, almost quadruple that of the prior period.

by Emily Hawkins for City AM

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