Following a major hit to revenues as a result of the global pandemic, the fashion brand is now starting to see good news.
The Spanish multinational fashion group houses eight brands: Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe and sells in 202 markets via its online platform and 96 markets through its 7000 stores. Not unlike many other retail brands, Inditex was hit hard by the Coronavirus-induced lockdowns that forced store closures. The brand reported a €409M loss in Quarter 1 but Quarter 2 which ran from May to July has seen a net profit of €214M.
As well as this the retail group has also enjoyed a strong surge in their online sales of 74 per cent which has helped to offset the negative impact of store closures. Another positive for the group is reflected in the total sales recorded. Quarter 1 reported a 44 per cent drop in total sales whilst Quarter 2 has only seen a 31 per cent drop even though 87 per cent of its shops still remained shut during May.
Pablo Isha, Executive Chairman has commented on the news: “The recovery and strong performance are due to the hard work, engagement and creativity of everyone in Inditex. I am particularly pleased with our online sales growth, which demonstrates the critical important of our strategy to integrate store and online This is a cornerstone of our unique business model.”
