PARIS – Zara owner Inditex is off to a strong start for summer.
The Spanish fast-fashion giant reported sales rose 11.5 percent in constant currency between May 1 and June 1, giving the company a strong start to the second quarter as shoppers snap up its latest collections.
The update came alongside first-quarter results that were slightly ahead of expectations. Sales in the three months to April 30 were up 8.8 percent at constant currency to 8.75 billion euros. That exceeded analyst expectations, which had been expecting growth closer to 8 percent.
The bigger surprise came from profitability. Gross margin reached 61.2 percent, up 67 basis points from a year ago and ahead of analyst forecasts.
That matters because much of the fashion industry is struggling to find growth at both ends of the market as consumers grapple with economic headwinds and political instability.
