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Inditex's half-year profits soar by 26% as spending on Spain's high streets grows
Thursday, September 17, 2015 @ 6:38 PM

HIGH-STREET clothing empire Inditex has reported an upsurge in profits due to healthier retail activity in Spain complementing the firm's existing success overseas.

Founded by Galicia-born tycoon Amancio Ortega and his late ex-wife Rosalía Mera, Inditex encompasses the world-famous cut-price brand Zara, one of the best-known of its brands outside Spain.

Zara's 'younger sister' Bershka, budget girlie streetwear chain Stradivarius, rock-chick and casual men's and women's label Pull&Bear, underwear firm Oysho, mid-upper high-street stores Massimo Dutti and Uterqüe, and high-quality interiors brand Zara Home make up the rest of the multinational's ranges.

Half-year profits are up 26% on last year, climbing to €1.16 billion over the six-month period between February and July inclusive.

This is normally the less-buoyant time of year for retailers, since the August-January period includes the summer and post-Christmas sales.

Taking the turnover hike from newly-opened branches out of the equation, Inditex registered a year-on-year rise in sales in stores that were open during the same six months of 2014 of 7%.

The hotter-than-usual summer across Europe has meant more summer clothing being sold than in previous years.

A third of Inditex's stores are based outside Europe, but these make up the majority of its profits and include branches in Asia and the Middle East, and Central and South America.

A total of 94 stores, mainly Zara and Zara Home, were opened worldwide in the six months leading up to the end of July this year, and between summer 2014 and now, around 12,000 new jobs have been created.

Read more at thinkSPAIN.com

 



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