Zara, the owner of Inditex has announced first quarterly losses as Covid-19 restrictions have forced them to close almost 90 per cent of stores in the three months from February to April.
The loss totals €409M and comes after sales slumped to €3.3bn, down from €5.9bn in the same period a year earlier. Also owning Massimo Dutti and Bershka, the group has said the drop in sales had slowed, with at constant currencies falling 34 per cent in June, compared to a year earlier versus a 51 per cent slide in May.
As of the start of this week, 5743 stores of Inditex’s 7412 were open, across 72 markets. Meanwhile online sales had skyrocketed by 95 per cent in April, when stores were closed.
In the next three years, the company has vowed to invest €2.7bn to accelerate its strategy of focusing on large stores in prime shopping areas and on its online business.
