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.
In honor the @CFDA’s announcement of @iamnaomicampbell receiving the Fashion Icon Award at the 2018 #CFDAAwards, which will take place on June 4, here’s a #tbt of the supermodel on @michaelkors’ runway in 1991. #wwdfashion #wwdarchive (📷: George Chinsee)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech during @sxsw for @createcultivate in partnership with @fossil. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.