Inditex’s net profit for the first half of the year increased by 41%

The Inditex Group, which owns the brands Zara, Pull & Bear, Massimo Dutti, Bershka and others, informed on net profit growth in the first six months of the year by 41%, to €1.8 billion. Total revenue increased by 24.5% to €8.6 billion. Sales for the reporting period increased by 24.5% to €14 .8 billion, and profitability reached the highest level in the last seven years – 57.9%.

Inditex explains such high results by the fact that consumers have well received its spring-summer collection. At the same time, online sales have been growing strongly, and, as Inditex expects, by the end of the year, the share of online sales in the group’s total sales will exceed 30%. Experts notethat the company significantly increased retail prices for its products, which allowed it to offset the increase in costs.

During the first half of the year, the company opened new stores in 24 countries, bringing their number worldwide to 6370, of which 60% are located in Europe. The second most important market for the company was North and South America (20.1%), a year earlier Asia was in second place. The company also said that it has provided for all possible expenses for the current year associated with exiting the Russian and Ukrainian markets. In the first quarter of this year, Inditex has already had to write off €216 million because of this.

After the publication of financial statements, Inditex shares rose 5%.

Alena Miklashevskaya