LONDON — First-half net profits at Inditex, parent of fast-fashion brands including Zara and Massimo Dutti, climbed 0.7 percent to 951 million euros, or $1.25 billion, the company said, while the third quarter has got off to a solid start.
This story first appeared in the September 19, 2013 issue of WWD. Subscribe Today.
Sales were up 6.9 percent to 7.7 billion euros, or $10.09 billion, while sales in local currencies advanced 8 percent in the six months to July 31. The results were broadly in line with analysts’ projections.
All dollar figures have been converted at average exchange for the six-month period.
The group said it opened 95 stores in 40 markets during the period, bringing the total across 86 markets to 6,104.
Third-quarter store sales in local currencies climbed 10 percent in the period between Aug. 1 and Sept. 14.
Inditex said the most noteworthy store openings in the last six months included Pull&Bear’s first store in Berlin’s busiest shopping district; the first Zara Home stores in Japan, in Osaka and Yokohama, and the new Zara store on Istiklal Street in downtown Istanbul.
Later this month, Zara Home will enter the Swedish market, where it will open a flagship in Stockholm, while later this year a Massimo Dutti will open on Rue de la Paix in Paris, and Zara stores will land in Seattle and in Port Elizabeth, South Africa. Zara Home is also planning to open stores in Paris and Barcelona.
Cantor Research in London called the results “encouraging against a period with challenging comparables.”