Zara-owner heads toward recovery despite restrictions

Zara-owner Inditex seen profits of €671million in the first nine months of 2020 and €866 million in the third quarter.

Despite 21 per cent of the group’s stores being forced to close in November, with 8 per cent still closed today, sales in local currencies amounted to 81 per cent of November 2019 levels, with the figure rising to 87 per cent from 1 December to 10th.

But a further 10 per cent of the retail group’s stores will be forced to close at the weekend.

Although Inditex sales declined by 14 percent in quarter three, this was an improvement on the 44 per cent and 31 per cent drop in Q1 and Q2 respectively.
Growth in online sales was strong, with 75 per cent growth in constant currencies in the first nine months of the year, and 76 per cent in the third quarter.

Inditex reported that sales in local currencies between 1 and 18 October actually rebounded to match the record levels reached in the previous year.

Inditex’s executive chairman, Pablo Isla, said that the results were: “the direct consequence of effective management in every area of the Company, with a seamless coordination between each link in the business model: design, product, manufacturing, logistics, stores and online.

She added: “They are also evidence of the Group’s ability to react and adapt continuously in an unpredictable environment and its unwavering commitment to offering unbeatable product, quality and service”.

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