11 September 2024
If you are covering Inditex’s latest financial results, please find below a comment from Mamta Valechha, consumer discretionary analyst at Quilter Cheviot:
“Inditex, the parent company of Zara, reported a strong second quarter performance this morning, with both revenue and earnings ahead of expectations, and current trading proving robust. Sales in the second quarter were up 10%, which is an impressive feat given how consumer confidence is has resulted in weak retail spending overall.
“By brand, Zara, by far the largest within the group, actually grew the slowest, whilst Bershka and Stradivarius were above average, and Pull & Bear and Massimo Dutti somewhere in between. Given the historic reliance on Zara, it is good to see other brands under the umbrella delivering growth to the overall business.
“Meanwhile, current trading, which reflects sales of the recently launched autumn and winter collection, has been well received and this is translating into increased sales at the tills. Organic sales accelerated to 11%, on a tough comparison of 14% growth last year, but did come in slightly below consensus expectations (11.5%). However, sales figures are only for the month of Aug to the start of Sept, and given the colder weather that has hit much of Europe, the autumn and winter collection should continue to do well for the rest of the year.”
