Inditex faces Russia trouble after sales surge

STORY: Sales at Zara-owner Inditex soared above pre-health crisis levels at the start of its financial year.

But the retailer now faces a fresh challenge in the months ahead after it stopped trading in Russia.

The company's shares tumbled earlier this month after it closed its 502 shops in the country and halted online sales.

Russia and Ukraine accounted for 5% of its sales growth from the start of February to March 13.

CEO Oscar Garcia Maceiras said it is still paying salaries to employees in Russia.

“Our main objective was at that time and still is, with the suspension of operations in Ukraine and Russia, is the wellbeing our staff. We have a special support plan and we are in constant contact with them. What we announced was a temporary suspension of operations and our goal is to return to operations as soon as circumstances allow it, but obviously now is not the right time.”

The Spanish group which - which is the world's number 1 fast fashion retailer by sales - reported Wednesday (March 16) that its store and online sales between the start of February and March 13 jumped 33% from the same period a year earlier, and were up 21% from the same period in 2019.

Garcia Maceiras also said the company plans to make price adjustments in markets affected by inflation without disrupting its business model of accessible fashion.

In Spain it expects to increase prices by an average of 2%.