Inditex, the parent company of Zara, has reported a better-than-expected 54% rise in profits in its first quarter.
In the three months ended 30 April 2023, Inditex, which also owns Bershka and Pull & Bear, reported a gross profit rise of 14% to £3.9 billion (€4.6 billion).
EBITDA also increased 14% to £1.8 billion (€2.2 billion) in the period, the company stated.
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In-store and online sales increased 13% to £6.5 billion (€7.6 billion), in line with the 13.5% prediction in the first six weeks of the 2023 financial year.
The company also saw a 13% increase in sales to £6.5 billion for the period.
Looking forward, the company revealed its key priorities are to continually improve the fashion proposition, enhance the customer experience, and increase its focus on sustainability.
As a result, Inditex is “on track to deliver” upon all of the targets set for 2023 to 2025, as per its Sustainability Roadmap Goals.
In a statement, the company stated: “Inditex continues to see strong growth opportunities. To take our business model to the next level and extend our differentiation further, we are developing several initiatives in all key areas for the coming years.”
It added that it expects space contribution to sales to be positive in 2023.
“We continue to see a very satisfactory evolution of online sales and increasing participation in the group total. At current exchange rates, Inditex expects a -2.5% currency impact on sales in FY2023,” the company added.
