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MADRID, Dec 14 (Reuters) – Zara owner Inditex ( ITX.MC ) reported a 24% jump in net profit in the first nine months of the fiscal year, buoyed by strong sales as global consumer demand for clothing weakened, it said on Wednesday. .
The world’s largest fashion retailer’s store and online sales rose 19 percent from a year earlier, slightly faster than analysts had expected, after raising prices by 5 percent or more since the spring to counter inflation in many markets.
In the February-October first year, led by Marta Ortega, daughter of founder-owner Amancio Ortega, as a non-executive chair, net profit reached 3.1 billion euros ($3.30 billion).
Known for its ability to quickly deliver the latest designs to consumers thanks to flexible sourcing, Inditex has recently been offering more “high-fashion” Zara pieces to spur impulse buying for special occasions, risking unnecessary spending on high-cost living. A company source said.
Such an approach allows Inditex to sell high-value pieces and attract consumers from the luxury segment of the market, according to company sources and analysts.
Inditex said sales between November and early December 8 were up 12 percent from a year ago.
The company’s second quarter sales were up 16 percent compared to the same period a year ago.
Reporting by Corina Pons, Editing by Inti Landauro
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