Zara owner Inditex’s half-year like-for-likes jumped 5% as it reported record sales and profits.
Net profit hit €1.55bn, up 10% year on year, as sales jumped 7% to €12.82bn.
Inditex said like-for-likes were positive across all brands and geographies and in stores and online. The fashion group has 7,420 stores in 96 countries and trades online in 106 countries.
Inditex executive chairman Pablo Isla underlined the “relevance of the investments we have made in the stores as well as in logistics and technology, all of which have been key elements in the development of our customer-focused integrated store and online platform”.
The good run has continued for the global fashion giant as store and online sales jumped 8% between August 1 and September 8.
Inditex estimates that like-for-likes will grow between 4% and 6% in its 2019 financial year.
Sustainability success
Sales of the group’s Join Life label, which it said “aims to achieve the highest sustainability standards”, increased “considerably” to 136 million in the first half, matching the sales figure for the previous 12 months.
In 2019, 20% of Zara garments will feature the Join Life label. Across Inditex, the Join Life label is expected to grow 110% this year and by 2020 it will represent 25% of all the clothing sold by Inditex.
Isla said: “The company’s strong business momentum and its decisive commitment to sustainability all along our value chain are clearly compatible.”
Next year Inditex will fully eliminate plastic bags at all its chains, a milestone already attained at Zara, Zara Home, Massimo Dutti and Uterqüe.
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