**Inditex beats H1 expectations**
With sales up 11% to 14.8 billion euros ($15.1 billion) in the first half of 2023, Inditex, the owner of Zara and Massimo Dutti, has revealed a strong start to the year.
Inditex had a net profit of 1.8 billion euros for the period, a 41% increase over the same period last year. The gross margin increased by 56 basis points to 59.6 percent, showing that the business is successfully managing rising costs.
Same-store sales increased by 12% and online sales increased by 14%, during the period. All of the company’s brands grew, with Zara continuing to be the star performer.
Inditex, which is based in Spain, has been able to weather the economic storm better than many of its competitors thanks to its strong brand portfolio, flexible supply chain, and focus on sustainability. The business is also benefiting from the rising popularity of ‘fast fashion,’ which is attracting customers who want to stay up with the latest trends without spending a lot of money.
**AW23 starts well**
Inditex has also provided an update on its fall/winter 2023 (AW23) collection, which suggests that the strong performance it experienced in the first half of the year is likely to continue.
The AW23 collection has been well-received by customers, according to the business, with good sales across all brands. Zara, in particular, has had a strong start to the season, with its new collections being praised for their creativity and style.
Inditex’s success is a testament to the strength of its business model and its ability to adapt to changing consumer trends. The business is well-positioned to continue its growth in the years to come.
Here are some additional key points from Inditex’s H1 results:
* The company’s gross profit increased by 12% to 8.8 billion euros.
* Operating profit increased by 24% to 2.4 billion euros.
* Net cash increased by 10% to 9.3 billion euros.
Inditex’s shares rose by 3% in early trading on Thursday following the release of the results..
