Zara owner Inditex’s nine-month profit soars 32.5%, sales growth slows down By Reuters

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<span>© Reuters. FILE PHOTO: A shopper carries a bag from a Zara clothes store, part of the Spanish Inditex group, in Bilbao, Spain, November 30, 2021. REUTERS/Vincent West/File Photo</span><br />
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<p>MADRID (Reuters) -Zara owner <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Inditex </span></span> (BME:) said on Wednesday its net profit jumped 32.5% in February-October, but the fast fashion giant’s sales growth in the nine-month period slowed down from a year ago amid tougher times for consumers.</p>
<p>The world’s biggest fashion retailer said its net profit was 4.1 billion euros ($4.42 billion) as expected by analysts, most of whom are still betting on the company’s ability to sell fashion faster and draw more aspirational shoppers.</p>
<p>The company behind Zara and other brands is investing in bigger but fewer stores and logistics capacity to back up its online sales and deliver clothes a few days faster than its rivals, according to analysts. </p>
<p>Inditex’s sales, in stores and online, rose 11% year-on-year. A slower pace than the 19% increase reported a year ago, but it outperformed its main rival H&amp;M (ST:) , as analysts had forecast. Its gross margin reached 59.4%.</p>
<p>In the first half of the year, Inditex had posted a 13.5% rise in sales and a 40% net profit increase.</p>
<p>Between Nov. 1 and Dec. 11, Inditex’s sales grew 14% in local currencies from the same period last year, showing a good start to the holiday shopping season, with Zara offering 40% discounts during the crucial Black Friday week.</p>
<p>This week, Zara pulled an advertising campaign featuring statues wrapped in white from its websites after it prompted some pro-Palestinian activists to call for a boycott of the retailer. The company said it regretted the “misunderstanding” over the advertising campaign.</p>
<p>($1 = 0.9276 euros)</p>
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