A client enters the Spanish retail store Zara, a brand of the multinational clothing group Inditex.
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Zara owner Inditex increased its sales by 7% in the primary quarter of its fiscal 12 months, the corporate said on Wednesday, meeting analysts’ expectations.
The performance represented a slowdown from the previous 12 months, when the corporate benefited from a post-pandemic shopping spree.
Inditex, which also owns Pull&Bear, Massimo Dutti and other brands, is attempting to fend off strong competition from rivals comparable to H&M by identifying and implementing fashion trends more quickly.
The company has outperformed the competition in recent quarters and is benefiting from investments in latest in-store and online experiences
In addition, the corporate faces strong competition from rapidly growing Chinese online retailers Shein and Temu.
The world’s largest listed fashion retailer reported sales of 8.15 billion euros ($8.87 billion) within the three months to April, in comparison with the typical analyst forecast of 8.1 billion euros, in response to an LSEG survey.
Net profit rose 11% to 1.29 billion euros ($1.40 billion) within the three months to April, according to the typical analyst forecast of 1.3 billion euros, in response to the LSEG survey. The company reported a 54% rise in profits in the primary quarter of last 12 months.
According to Inditex, sales increased by 12 percent at constant exchange rates from May 1 to June 3.
