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ARTEIXO, Spain — Inditex SA, the world's biggest clothing retailer, reported first-quarter profit that missed estimates as prolonged cold weather across much of Europe delayed spring sales at the owner of the Zara brand.
Net income rose 1.4 percent to 438 million euros ($583 million) in the three months through April, the Arteixo, Spain- based company said in a statement today. The average of 20 estimates compiled by Bloomberg was 440 million euros.
Inditex shares have fallen 7.3 percent this year on concern over slowing earnings growth. The retailer in March reported the weakest profit gain in five quarters as a subdued Spanish economy damped consumption in its home market. More recently, a cool start to spring curbed purchases of seasonal fashions.
“Inditex had a very strong quarter a year earlier, making it tough to compare with the current period, while you’ve also seen sluggish demand mainly due to low temperatures across Europe,” Fraser Ramzan, a London-based analyst at Nomura, said before the earnings. Still, “the company still outperforms its peers and the business model continues to be strong.”
By: Manuel Baigorri; Editor: Celeste Perri
