Fashion giant Zara’s owner Inditex reported an 80% jump in quarterly profit on the back of soaring sales as consumers revamped their wardrobes after months spent stuck at home during the pandemic lockdowns.
The company said on Wednesday, June 8, it made a net profit of 760 million euros ($812 million) for the quarter to end April, in line with analysts’ expectations. Sales rose 36% to 6.7 billion euros, surpassing pre-pandemic levels, while its gross margin hit a 10-year high. Inditex shares rose as much as 5% in morning trade.
Zara has benefited from successfully passing on higher prices to shoppers despite a cost of living crisis squeezing margins at other retailers.
The company will continue to increase prices in markets affected by inflation during the second quarter while keeping its clothes affordable, chief executive officer Garcia Maceiras told analysts.
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