PARIS — Spanish retail giant Inditex reassured markets about prospects for the all-important year-end period as it reported a 6 percent rise in profit in first nine months, propelled by international and online expansion.Net profit for the first nine months totaled 2.3 billion euros, while sales rose 10 percent to 17.96 billion euros, the Zara owner said. It did not provide quarterly figures.The company recently launched its online sales platform in India and brought seven brands, including Massimo Dutti, Oysho and Zara Home, to Belarus in August.From Nov. 1 to Dec. 11, sales in stores and online increased at a brisk 15 percent in local currencies, the company said.“We think this statement should reassure investors,” said RBC analyst Richard Chamberlain in a research note.Sales growth on a like-for-like basis should “remain healthy, in our view, driven by a strong fashion offer, competitive pricing and e-commerce initiatives,” Chamberlain added.“The company’s trading update confirms a strong rebound in November sales,” said Cedric Lecasble, research analyst with Raymond James, in a note on Wednesday. Earlier this month, Lecasble lowered earnings per share forecasts for Inditex for 2018 and 2019 by 1 to 2 percent, citing the strengthening euro compared to other currencies and said Inditex likely suffered from tough trading conditions and mild temperatures in the Northern Hemisphere at the end of its third quarter to October.Lecasble, who estimates fourth-quarter sales growth at 11 percent at constant currencies, added in the research note Wednesday that cold temperatures across Europe, where the company generates the bulk of its sales, could continue to help business through the end of the year.Raymond James forecasts like-for-like sales growth for the company at 6 percent over 2018 to 2020, followed by 4 percent growth, calling it a “very strong performance in a highly fragmented but mature apparel market.”Key to the company’s performance, in addition to its highly lauded supply chain, is an advanced online business, which Raymond James refers to as Inditex’s “agnostic online/off-line capabilities.”The company plans to continue pursuing its expansion, online and internationally, Inditex chief executive officer Pablo Isla said in a conference call with analysts. Zara’s new online business in India, which was launched in October, had a “strong reception,” noted Isla.“With this online presence, our idea is to continue developing our presence in this attractive market,” he also said about India.Vietnam is another market where the company has been making inroads, Isla added, noting that on a recent trip to Hanoi, he could feel the “excitement” ahead of the opening of a Zara store there.“We are in a unique position as we enjoy a global platform that fully integrates the stores and online as the best way to respond to the demands of our customers. We continue developing new initiatives in a fully integrated way,” Isla said, noting Zara’s online presence stretches across Europe, Asia and the Americas.“We manage a diversified sales platform in 94 markets. The current base offers huge growth potential for the coming years,” he added.Some analysts in recent months have favored Inditex over its rival H&M, which Barclays downgraded to underweight in November, saying sales growth at the Swedish retailer was mostly coming from opening new stores. RCC Capital Markets in a note earlier this month flagged the “challenging” nature of store and online integration at H&M.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion