Inditex, the parent company of Zara, saw a 7% increase in sales during the first quarter of its fiscal year, in line with analysts’ expectations.
The performance reflected a deceleration compared to the previous year, during which it had enjoyed a surge in shopping activity following the pandemic.
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Market Analysis and Competitor Comparison
Inditex, the parent company of brands like Pull&Bear and Massimo Dutti, is striving to stay ahead of fierce competition from rivals like H&M by swiftly pursuing and delivering fashion trends.
In recent quarters, the company has surpassed its competitors, reaping the rewards of investments in innovative in-store and online offerings. However, it also confronts formidable competition from swiftly expanding Chinese-owned online retailers Shein and Temu.
During the three months leading up to April, the world’s largest listed fashion retailer disclosed sales of 8.15 billion euros ($8.87 billion). This figure slightly exceeded the average analyst forecast of 8.1 billion euros, as per an LSEG survey.
Net profit in the three months up to April saw an 11% rise to 1.29 billion euros ($1.40 billion), matching the 1.3 billion euro average forecast by analysts, according to the LSEG poll. Compared to the first quarter of the previous year, where the company reported a 54% rise in profits.
Inditex reported a 12% increase in sales at constant currencies from May 1 to June 3.
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