By Mauro Orru
Industria de Diseno Textil SA, owner of Zara known as Inditex, reported higher profits and sales in the first half, following positive online sales in the second quarter as customers turned to spring and summer collections .
The Spanish fashion giant, which also owns Bershka, Massimo Dutti and Pull&Bear, said on Wednesday net profit for the six months ended July 31 jumped to 1.79 billion euros ($1.78 billion). against 1.27 billion euros last year.
Sales rose to 14.85 billion euros from 11.94 billion euros. In-store and online sales in constant currency between August 1 and September 11 increased by 11% compared to the record period of last year.
Inditex said it expects online sales to exceed 30% of total sales by 2024.
Earnings before interest and taxes increased from 1.69 billion euros to 2.43 billion euros in the first half, while earnings before interest, taxes and amortization fell from 3.10 billion euros to 4 .03 billion euros.
For the year, Inditex expects a stable gross margin, at plus or minus 50 basis points, as well as a positive currency effect of 0.5% on sales.
Write to Mauro Orru at [email protected]; @MauroOrru94
(END) Dow Jones Newswire
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