Spanish clothing giant Inditex is the parent company for Zara, Massimo Dutti, Bershka, Pull & Bear, and Stradivarius. It operates over 7,000 stores across 93 countries worldwide. Inditex operates a different operating model in comparison to your standard fast-fashion retailer – using customer feedback to replenish stores weekly. For Zara stores, it can take as little as 15 days for an item to go from design to production to store, meaning the retailer is always on top of trends. The origins of Inditex began as a shirt company in the 1960s in A Coruña, Spain, with the first Zara store opening in 1975. Inditex was formed in 1985 and began expanding internationally, first in Portugal. It opened Pull & Bear in 1991 and Bershka in 1998. Other brands were acquired in the same time period. It also operates ecommerce platforms for the various brands across multiple markets. The retailer avoids media advertising, instead focusing on securing prime-location stores and celebrity endorsements.
Inditex has reported an increase in profit and sales that the group said is a result of a “very robust operating performance”.
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Inditex saw group profits surge in its latest quarter, with pre-tax profit margins rising from 14.7% to 19.8% and group EBITDA jumping 14% to €2.2bn (£1.89bn) for the three months to April 30, 2023 (2023/24)
Inditex has posted strong annual profit growth, which it attributed to the strength and execution of its business model.
Spanish fashion giant Inditex posted an 11% jump in sales, but a more modest profit increase as inflation pushed up the cost of goods.
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