Popular fast fashion brand posts positive financial results in latest quarter.
Inditex concentrates on identifying trends sooner and updating collections amidst the cutthroat competition in the fast-fashion sector. This tactic has paid off. Even the experts were taken aback by the exceptional earnings.
Spanish behemoth Inditex, renowned for its brands like Zara and Bershka, managed to set a new record in profits within the first quarter of its financial year. According to the company, it amassed an impressive 1.29 billion euros from February to the close of April. This marked a significant 11% growth compared to the earlier fiscal year.
Its revenue also witnessed a 7% boost to 8.15 billion euros in comparison to the preceding year. Amidst persisting high inflation and intense geopolitical tensions, the Inditex stock has seen a substantial surge in recent times. The company has disclosed plans to invest a staggering 900 million euros on its logistics infrastructure by the years 2024 and 2025. It feels there's plenty of space to grow in this field, according to Inditex.
Inditex managed to meet market projections with its recently released numbers, while major rival H&M surpassed estimates when delivering theirs at the end of March. However, H&M saw a decrease in sales during their initial quarter. Inditex is focused on detecting trends faster and shifting collections in the ever-intense fast-fashion industry battle.
Both Inditex and H&M face escalating online competition, especially from rising stars such as the Chinese budget clothing company, Shein. Shein is eyeing the London market for an IPO and could potentially raise 50 billion pounds (60 billion euros), potentially making it one of the largest IPOs in recent London history.
