The cost-of-living crisis seems not to affect Spanish fashion retailer Inditex (much): despite price increases, sales and profits continue to grow.
Strong winter collection
The company’s business model is robust in the current times of crisis: in the first nine months of the current financial year, sales rose 19 % to 23.1 billion euros, helped by well-received autumn and winter collections. The number of visitors online and in shops is on the rise, and sales grew in all regions. The retailer behind retail chains like Zara, Massimo Dutti and Bershka opened new shops in thirty markets and now has 6,307 stores worldwide.
Net profit even rose 24 % to 3.1 billion euros, helped by the fact that the fashion group was able to raise prices about 5 % this year to cope with rising costs. The company continues to see strong growth opportunities thanks to its fully integrated business model, which allows it to respond more quickly to fashion trends, and is betting on some more expensive party clothes at Zara. Technology is also a gamechanger: by 2024, online will account for almost a third of total sales at the fashion retailer.