The world’s largest clothing retail chain Inditex reported on Wednesday an increase in profits and revenues in the first half of the fiscal year, thanks to consistently strong demand and the rapid launch of autumn and winter collections.
In the first six months of the fiscal year ending in July, the company that owns brands such as Zara, Bershka, and Pull&Bear achieved a net profit of 1.4 billion euros, which is nine percent higher than in the same period last year, reports the BBC.
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Net revenues jumped by 11.5 percent to 11.7 billion euros. The Spanish company explains this growth by the planned “rapid transition” in August to autumn and winter collections. Profit margins were somewhat eroded by the strong rise of the euro against most other key currencies starting in June.
Organic growth was also weaker than in the same period last year, with sales growth in stores open for more than a year at six percent, compared to 11 percent in the same period in 2016.
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Inditex operates in 93 markets and during the observed period opened new stores in 35 markets, bringing their total number to 7,405 by the end of July.
Shareholders received 1.1 billion euros in dividends in May, or 34 euro cents per share. The same amounts per share will be paid in November, Inditex announced.
