Inditex has posted a profit in its second quarter, as it begins to recover from the impacts of the coronavirus pandemic.
The Spanish fashion group, which owns brands such as Zara, Pull&Bear and Bershka, recorded a €214m (£197m) profit in the second quarter from May 1 to July 31, which was a marked improvement from the €409m (£376m) loss it suffered in the first quarter.
For the first half, Inditex swung to a loss of €195m (£179m) due to its expenditure on an “advanced store digitalisation programme”.
Sales for the second quarter were down 31% year-on-year, compared with a 44% decline in the first quarter, as more stores began to reopen throughout the period.
Today, 98% of Inditex’s stores worldwide are open to the public, although a large majority still have restrictions in place in-store.
Online sales continued a growth trajectory, averaging 74% year-on-year in the first half.
Inditex also recorded a landmark 1 million online orders in a single day for the first time.
Initial sales in local currencies from the third quarter also show a continuing improvement, with sales down just 11% between August 1 and September 6 compared with same period in 2019.
Inditex chief executive Pablo Isla said: “The recovery and strong performance are due to the hard work, engagement and creativity of everyone in Inditex. I am particularly pleased with our online sales growth, which demonstrates the critical importance of our strategy to integrate store and online. This is a cornerstone of our unique business model.”
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