Monday 20 November 2017

Zara owner Inditex says pre-Christmas trading strong

Inditex is world's biggest clothing retailer

Global success: Shoppers in a Zara store in Galicia, Spain
Global success: Shoppers in a Zara store in Galicia, Spain

Zara owner Inditex, the world's largest clothing retailer, said today that sales rose 10pc in the first six weeks of the fourth quarter, the run-up to Christmas, after posting flat nine-month net profit.

The final quarter is the most important of the year to retailers and companies are hoping to benefit from early signs of recovery in Europe, especially in Inditex's home country pain.

The retailer, which runs 6,249 stores globally, posted nine-month profit to the end of October of €1.67bn, in line with forecasts in a Reuters poll of analysts.

Earnings before taxes, interest, depreciation and amortisation (EBITDA) reached €2.78bn on sales of €11.93bn, also in line.

The company, which operates brands like teen label Bershka and upmarket chain Massimo Dutti, has seen growth crimped this year due to currencies in some of its 86 markets losing value against a strong euro.

It has also found it difficult to top 2012, when the company's ability to push out small collections using a slick supply chain delivered particularly well.

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