Inditex, the fast-fashion giant behind the Zara brand, reported a 9% increase in August sales (excluding currency effects) compared to the same month last year, despite a heatwave across its largest market, Europe, marking a stronger-than-expected start to the autumn season. In the second quarter (May-July), the company recorded sales of 11 billion euros ($12.8 billion), maintaining resilient performance amid rising energy prices due to the Iran war and weak consumer confidence. First-half gross profit rose 8.3% to 11.6 billion euros, with a gross margin of 58.7%, though analysts noted this slightly missed expectations. Anne Critchlow, an analyst at Berenberg, said, "Despite the heatwave and other factors, current performance looks very solid." Inditex also announced additional capital expenditure of 200 million euros for office renovations, on top of the 2.3 billion euros already earmarked this year for store refurbishments and logistics improvements. RBC analysts estimate that the company's annual capital expenditure will be about three times that of Swedish competitor H&M.
Industria de Diseno Textil SAAugust sales up 9% despite heatwave, showing strong consumer demand.
H & M Hennes & Mauritz AB (publ)