The parent company of popular fashion retailer Zara announced Wednesday that it exceeded expectations for summer sales performance, posting currency-adjusted revenue growth of 11.5% during May that surpassed what financial analysts had predicted.
Inditex also disclosed that its currency-adjusted sales increased 8.8% during the first quarter spanning February through April. The better-than-anticipated performance at the beginning of the company’s second quarter may ease concerns among investors about the fast fashion retailer’s ability to maintain customer interest amid rising living costs triggered by the Iran war-driven energy crisis. The company’s stock price has declined since the beginning of this year.
The fashion giant recorded quarterly revenue of €8.75 billion ($10.17 billion), while also showing enhanced profitability with gross margins reaching 61.2% compared to 60.6% during the same period last year. This improvement demonstrates the company’s success in maintaining profit levels despite increased expenses for raw materials and transportation.
Financial experts had projected May sales growth would reach 8%.
($1 = 0.8605 euros)
