The world’s largest fashion retailer has weathered the impact of the Covid crisis: Inditex, the parent company of chains like Zara, saw its sales rise above pre-Covid levels and is again profitable.
Record figures
Inditex, the holding company of retail chains including Zara, Pull&Bear, Massimo Dutti and Bershka, is back on its feet again. In the second quarter, the fashion group achieved record results that again exceeded pre-crisis figures. Sales amounted to 6.99 billion euros, an increase of 7 % compared to 2019, and net profit amounted to 850 million euros.
For the first half of the year, sales were 49 % higher than in 2020, and profits amounted to 1.27 billion – coming from a loss a year earlier. In particular, the online segment performed well: e-commerce sales were 36 % higher than in the first half of 2020 and as much as 139 % higher compared to 2019.
Digital transformation
The retailer announced several initiatives to strengthen its growth further. Zara Man is launching a new sportswear range called Zara Athleticz – with simplicity, comfort and functionality as the key words. Fashion brand Uterqüe will be fully integrated into Massimo Dutti next year: the label will no longer have its own store network, but the range will be available through the Massimo Dutti webshop and in some of the brand’s brick-and-mortar stores.
Furthermore, Inditex continues to focus on its digital transformation. For example, there will be an app for the Zara ID service, with which shoppers can identify themselves through a QR code for digital payments, returns and the collection of online orders.
