Inditex 9-Month Profit Rises 4% With Growth in All Regions
Inditex reported a 4 percent rise in net profit over the first nine months, as the company focused on operational efficiency over sales promotions in the third quarter.
The Zara owner posted 2.4 billion euros ($2.7 billion) in net profit for the period, while sales grew 3 percent in the February to October period to 18.4 billion euros, with growth in all regions.
The Spanish company, which also owns labels Pull&Bear, Massimo Dutti and Bershka, did not provide a breakdown of third-quarter results.
“The group’s strong business model, which continues to deliver solid structural growth in all markets, along with our constant focus on developing the integrated store and online platform continued enhancement of technology and systems,” said Pablo Isla, chairman and chief executive officer of the retailer, in a statement.
“Inditex has clearly been trading sales for profits although Q3 was a little soft due to an exceptionally warm September, we think its trading performance is solid in the context of a challenging environment,” said Richard Chamberlain, analyst with RBC Europe, in a research note.
In addition to expanding its store networks into new markets, Inditex is investing in state-of-the-art logistics systems to fuel growth. The company has opened stores in 51 markets over the first nine months of the year as well as upgraded its web site and completed the integration of Zara’s stock-management system in markets where its stores are integrated with the online platform.
This story was reported by WWD and originally appeared on WWD.com.
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