The world’s largest apparel retailer, Inditex, which owns Zara, on Wednesday announced a record-breaking net profit for the first half of 2023 thanks to robust sales.
The Spanish group broke its previous record of 1.79 billion euros in the same time a year prior with a net profit of 2.51 billion euros ($2.7 billion) in the first six months ending July 31.
This outcome exceeded the EUR2.42 billion forecasted by financial analysts at FactSet.
This surge in sales, which reached 16.85 billion euros, 13.5 percent more than in the same time a year prior, displaying “very satisfactory development both in stores and online,” was credited by Inditex as the cause of this momentum.
According to a business release, its pre-tax earnings (EBITDA) increased by 15.7% to 4.66 billion euros.
According to Inditex CEO Oscar Garcia Maceiras in the statement, the store made “determined progress” as seen by the first-half records in a complex global context.
The crisis in Ukraine has prompted Inditex, which owns seven brands including upscale Massimo Dutti and teen label Stradivarius, to close its 514 stores in Russia, which was at the time its second-largest market after Spain.
In order to differentiate itself from competitors like H&M, the business chose to raise prices in order to offset rising production expenses brought on by an increase in energy and shipping costs around the world.
