Zara owner struts higher after showing ‘strong’ financials

Zara owner Inditex (BME:ITX) was boosted on Wednesday, up 3.7% in Madrid trading at €45.57, after reporting a strong performance in its three months ending April.

Inditex posted revenue of €8.2 billion, a 7.1% increase from the same period last year, which at constant currency rates equated to 10.6% sales growth. Profit before tax increased by 11.1% to €1.7 billion.

It comes as the fashion retailer is rolling out a two-year investment campaign to expand its logistics capabilities.

Some €900 million is being invested this year, and, the same amount will be invested next year. At the same time, it plans to increase ‘gross store space’ by 5% between 2024 and 2026.

The fashion retailer, meanwhile, highlighted that its Spring/Summer collections “continue to be very well received by our customers”.

“Inditex continues to see strong growth opportunities,” Inditex said in a statement.

“Our key priorities are to continually improve the fashion proposition, to enhance the customer experience, to increase our focus on sustainability and to preserve the talent and commitment of our people. Prioritising these areas will drive long-term growth.

“To take our business model to the next level and extend our di¡erentiation further we are developing several initiatives in all key areas for the coming years.

Known for its brands such as Zara, Massimo Dutti, and Pull&Bear, the Madrid firm is deemed to be the world's largest listed fashion retailer.