Inditex reports $2.7 billion in net profits, records 4% growth in third quarter

Inditex is the world’s biggest clothing retailer. Its strategic decision to not provide discounts from September, unlike its peers, have contributed to its continued growth.

Inditex, the world’s biggest clothing retailer, has reported a net profit of $2.7 billion (2.4 billion euros), up by 4%, for the first nine months of its financial year; it has maintained its guidance for the rest of the year.

In September, Inditex, which also owns up-market label Massimo Dutti and Bershka, had stated, it expects its sales to grow between 4% to 6% over the second half of its financial year.

Unlike its peers, Inditex, which launched online sales for Zara in 106 new markets in November, did not discount its clothing range from September; as a result, its gross margin grew by 108 basis points during the third quarter.

In a statement accompanying the results, Marcos Lopez, Inditex’s Director of Capital Markets stated, like-for-like sales grew by 3% in the second half of 2018 to the end of November, following a good start to the season and an extraordinarily warm September.

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