HomeIndustriesZara Owner Inditex Beats Q1 Profit Forecast Following Sales Boom

Zara Owner Inditex Beats Q1 Profit Forecast Following Sales Boom

Clothing company Inditex, which owns retailer Zara, posted better-than-expected first-quarter earnings on Wednesday following a recent fashion sales boom.

Net profit for the first quarter was 1.2 billion euros ($1.24 billion), a 54% rise from the previous year. Beating analysts’ expectations of a 980 million euros net profit, this gain was driven by a 16% sales boom for the company’s spring-summer collection.

By beating analysts’ expectations, the Spanish fashion house proved its resilience in an increasingly challenging economic environment, especially amid cost pressures such as a 20% rise in the average wage of store workers in Spain. Inditex’s reported 7.56 billion euros in sales fell in line with analysts’ expectations despite the sales of its profitable Russian division in 2022.

Inditex also proved to be a stronger performer than its rivals, particularly as H&M struggled to manage the cost of living crisis. Inditex’s online and in-store sales rose 13% to 7.6 billion euros for the quarter.

Part of Inditex’s pricing strategy has been to maintain higher prices for items sold outside of the eurozone. In markets such as the United States, Mexico, and Saudi Arabia, its brands’ prices can be up to 91% more costly than in its home market.

Warner Bros, Discovery Looking to Split Businesses to Boost Its Stock

Warner Bros. Discovery, the entertainment conglomerate behind cable network HBO, Warner Bros. film and TV studios, and streamer Max, is exploring several options that...

Domino’s Pizza Stock Falls Amid Worse-Than-Expected Sales in Q2

The shares of Domino’s Pizza tumbled 12% on Thursday after the pizza restaurant chain reported worse-than-expected sales in the second quarter and adjusted its...

Ray-Ban’s Owner EssilorLuxottica Acquires Streetwear Brand Supreme in $1.5 Billion Deal

Italian-French corporation EssilorLuxottica, which owns the legendary sunglasses and eyeglasses brand Ray-Ban, has acquired streetwear maker Supreme from VF Corporation in a $1.5 billion...