Spanish fashion label Inditex saw its like-for-like turnover rise 2% to 7.66 billion euro in the first semester of 2013, while its profits also rose.
Increased turnover thanks to new stores
In the first six months of 2013, Inditex increased its total sales 5.7% compared to the same period last year: the weak spring period, because of the bad weather in Western Europe, did not affect the sales too much. Taking local currencies into account, the increase is even more impressive, reaching 8%.
Expanding the number of stores partly contributed greatly to the increase:Inditex opened 95 new stores in the past six months, reaching 6,104 stores in 86 different markets. Additionally, good results in upcoming markets like China also helped Inditex, compensating the weaker results in its home market Spain.
Profits survive increasingly expensive resources
The first half of 2013 resulted in a net profit of 951 million euro: the0.7% increase outgrew all analysts’ expectations, as 2012 was already a record year. However, Inditex’ gross margin dropped from 59.6% to 58.6%, partly because of rising resource costs.
Analystsexpect a good second half of 2013, thanks to a better summer and an increased consumer confidence – even in Spain. A strong euro could slow down possible results though.
Inditex also keeps on opening new stores, both online and offline. Its online operation has now expanded to 22 countries, with Zara opening a Russian web shop in August and Massimo Duti and Zara Home launching websites in Canada.