Inditex Nine Month Net Profit More Than Triples to $2.8 Billion

Inditex, the world’s biggest fashion retailer, said that its sales in recent weeks were up by a third on the same period last year and ahead of levels seen in 2019 before the pandemic.

Rival H&M also reported higher sales over the past three months as fashion retailers started to benefit from recovery from the lockdowns at the previous height of the pandemic.

Inditex, the owner of the Zara and Massimo Dutti brands, said autumn and winter collections had been well received by customers.

The Spanish company said its online and store sales in constant currency between the start of November and Dec. 10 increased 33 percent versus the same period in 2020 and were 10 percent up from 2019.

Inditex has shuffled its senior management with Marta Ortega, a daughter of the company’s founder, due to take over as chair next April.

Over the first nine months of its financial year, Inditex cemented its recovery to close to pre-pandemic levels, posting a net profit of €2.5 billion ($2.8 billion), 273 percent more than in the same period a year ago, as shoppers massively returned to their former habits.

The net profit over the first nine months from Feb. 1 was still below the €2.7 billion reported in the same period in 2019.

Sales from February through October reached €19.33 billion, 37 percent more than the €14.1 billion in the same period last year, but still below the €19.8 billion reported in 2019.

During its third quarter, sales growth in constant currency was 21 percent versus the same period in 2020 and 10 percent up from 2019, the company said.

“The recovery continues to gain momentum,” Marcos Lopez, the company’s Capital Markets director said in a statement.

The company benefits from being able to produce more than half its products near its base in Spain and deliver them to consumers faster than peers, sparing it the worst of a global supply-chain crisis.

By Corina Pons; Editing by Inti Landauro and Keith Weir

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