Inditex sales and profits “hit historic highs” in first-half year
Inditex, the Spanish retail group whose brands include Zara, Massimo Dutti, Pull & Bear, Bershka and Stradivarius, has reported record first-half year revenue of €11.94bn (£10.2bn), up 49% year-on-year.
Net profit amounted to €1.27bn (£1.09bn), compared with a loss of €195m (£166.78m) in the first half of 2020.
Cash generation remained strong as the group's net cash position reached an “historic high” of €8bn (£6.84bn) at the end of the first half year - from 1 February to 31 July, 2021.
Online sales in local currencies registered first-half growth of 36% compared to first-half 2020, and 137% when compared to the same period in 2019. Online sales are expected to account for more than 25% of total sales in full-year 2021.
Second-quarter revenue accelerated and grew 7% in local currencies, to €6.99bn (£5.97bn), when compared with the previous historic high for the quarter, set in the second-quarter of 2019. Similarly, second-quarter 2021 net profit reached €850 million (£727m), outperforming the previous high set in second-quarter 2019.
Executive Chairman of Inditex, Pablo Isla, commented that the strong performance “is the result of the commitment displayed by everyone at the company and their continued focus on delivering top creative and quality fashion. Thanks to all of them we are reaping the benefits of the strategic and sustainable transformation in our unique business model.”
Zara Man is launching a line of sportswear that will be available online and in selected stores from 30 September, 2021. The collection is called Zara Athleticz and is based on simplicity, comfort and functionality.