Zara owner Inditex reports 734m euros profitBusiness | 12 Jun 2019 5:29 pm
Spanish retail giant Inditex, which owns the Zara clothing brand, said first-quarter profits increased due to record sales driven by a push to develop its online business, AFP reports.
The company, whose other brands include Massimo Dutti, Pull&Bear, Bershka and Oysho, reported net profit increased by 10 percent year-on-year to 734 million euros between February 1 and April.
The result is in line with the expectations of analysts surveyed by data company Factset, who predicted an average of 736 million euros.
It puts Inditex well ahead of its main rival, Sweden's H&M, which had a net profit of 77 million in its first quarter.
The Spanish group said in a statement that sales jumped by 5 percent to hit a new high of 5.9 billion euros, "driven by the ongoing digital transformation
of its integrated store and online sales platform".
However, it said that it applied a new accounting standard during this period, without which net profit would have increased seven percent, instead of
The company forecast that sales would increase to between four and six percent this year on a like-for-like basis. Inditex has been investing heavily in a bid to catch up to internet retail giants, and launched Zara online sales in Brazil in March.
Seventeen more launches are planned for the rest of the year, many of them in the Middle East.
Inditex shares ticked upwards by 0.3 percent in early trading on the Madrid stock exchange, which was down 0.4 percent.