In the first half of its fiscal year, Spanish fashion company Inditex has achieved another sizeable turnover increase and a 16 % company profit increase. Its performance even exceeded analaysts’ expectations.
Better than the competition
In the February – July period, Inditex managed a 10.47 billion euro turnover, up 11 % compared to the year before. It also achieved a 1.61 billion euro company profit, which is better than what analysts had expected (at 1.58 billion euro). Net profit also grew 7.7 % to 1.26 billion euro.
These results mean Inditex has once again outperformed its competitors, like H&M and Next, both of which did not manage to meet the expectations last week. Both pointed to the poor weather conditions in May and June, but Inditex was not bothered as its highly automated production capabilities allow it to quickly react to trends and difficult market conditions. About 65 % of its products come from factories in Spain or other countries nearby, while its competition gets about 80 % of its clothing from Asian factories.
In the first half of its fiscal year, Inditex has opened 83 new stores, with a total of 7,096 stores all across the globe. Aside from its physical stores, it also has an online presence in 39 markets.
