PARIS — Zara owner Inditex reported a 10 percent decline in third-quarter sales with brisk online growth, and signaled a strong recovery in operations over the period.
“In a somewhat more normalized environment, store sales have recovered strongly,” the company said Tuesday.
Sales came to 6.05 billion euros, a 10 percent decline at constant currencies, while net income was down 13 percent to 866 million euros. Online business grew 76 percent over the quarter.
The fast-fashion giant said that 5 percent of its stores were closed while 88 percent were affected by lockdown restrictions. The company is adjusting its network, focusing on bigger stores and that space growth for the year is on track.
The Spanish retailer, which also owns labels Massimo Dutti, Bershka and Stradivarius, turned the corner in the second quarter, bouncing back from a loss at the start of the year.
Inditex has moved quickly on the digital front, building state-of-the-art tracking systems in stores and offering speedy delivery in urban areas.
It is investing nearly 3 billion euros over the next two years to further improving its digital platforms and integrating store and online stock, while culling smaller boutiques to focus on high-tech flagships.
It recently enlarged its flagship in central Paris and had plans to open one of its largest stores in Asia in Beijing, touted as one of the most technologically advanced in the whole group.
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