Agenda-setting intelligence, analysis and advice for the global fashion community.
MADRID, Spain — Inditex SA, the world's largest clothing retailer, reported a 20 percent gain in nine-month profit boost as Spanish consumption recovered after years of austerity.
Net income rose to 2.02 billion euros ($2.2 billion) in the period through October, Arteixo, Spain-based owner of the Zara and Stradivarius brands said Thursday in a regulatory filing. That matched the average of estimates compiled by Bloomberg. Revenue gained 15 percent in the start of this quarter, excluding currency shifts.
The company is benefiting from growing demand in Spain, where the country’s October clothing retail sales were the strongest in at least six years, according to Barclays Plc. Inditex has opened about 400 stores on average over the past 5 years spread out among eight brands, and it has also been increasingly relying on e-commerce for growth, opening Zara.com in Hong Kong, Macau and Taiwan.
Inditex shares have gained 37 percent this year, boosting the company’s market value to more than 100 billion euros. Founder Amancio Ortega is the world’s second-richest person, with a net worth of about $75 billion.
By Rodrigo Orihuela; editors: Kenneth Wong, Thomas Mulier, Matthew Boyle.
