Spanish fashion giant Inditex has reported soaring profits and sales and hailed the response of customers to its autumn and winter collections.
For its interim 2023 nine-month results, the retailer reported that EBITDA increased 13.9% to €7.4bn (£6.37bn), while sales jumped 11.1% to €25.6bn (£22bn) driven by its new collections being “very well received by customers.”
Inditex, whose brands include Zara, said that its sales were “very satisfactory” across both stores and online, and were “positive in all geographical areas and in all concepts.”
Gross profits jumped 12.3% to €15.2bn (£13bn), while EBIT increased 24.3% to €5.2bn (£4.48bn) and profit before tax soared 29.8% to €5.2bn (£4.48bn).
The retailer’s net cash position grew 15% to €11.5bn (£9.9bn) compared to the same period last year.
Inditex said that based on current information it expects a gross margin of around 75 basis points higher for FY2023 compared to FY2022.
The strong trading update comes as Zara finds itself embroiled in controversy.
Yesterday, Zara faced backlash over an advertising campaign that some people claimed resembled images from the ongoing conflict in Gaza.
The Advertising Standards Authority said it had received several complaints about the social media campaign called ‘The Jacket’ – which showed a model holding a mannequin wrapped in what appeared to be white plastic.
Zara has since pulled the campaign and said it “regrets” the “misunderstanding”, adding that customers saw “something far from what was intended when they were created” back in the summer.