Inditex, the parent company of Zara and Bershka, among others, sold a billion euros less than pre-corona this spring. Yet there is a clear recovery, especially now that measures are easing.
“Progressive recovery”
Inditex beat expectations in the first quarter, from February to the end of April. Although sales were still a billion euros lower than in 2019, when Covid-19 was not yet an issue, at 4.9 billion euros sales clocked in significantly higher than analysts had predicted. Indeed, it was a growth of 48% compared to the same period last year, while many shops were still closed or had limited opening hours. Online sales in particular rose by 67%.
Net profit reached 421 million euros in the past quarter. Pre-corona, this would have been a third more, but given the circumstances, this was also a boost for the company. ” The results show a progressive recovery even as they have been materially affected by the health situation with the temporary closure of stores in key markets like the U.S., France, Germany, Italy, Portugal and Brazil,” Inditex told Reuters.
In the first week of June, sales remarkably more than doubled compared to the same period last year, accounting for a 5% increase compared to 2019. In the meantime, 98% of all shops worldwide have already reopened, which is noticeably leading to a peak in demand. How long this peak will last, however, remains to be seen.
