World's biggest clothing retailer, Inditex has reported a 9 per cent rise in its nine-month profit. It also reported that its sales growth jumped in recent weeks despite warmer than usual autumn weather in many European countries.
As its fashion peers struggle to adapt to changing consumer tastes with Abercrombie & Fitch and Gap posting dismal Q4 sales last month, Inditex's fast-fashion business and online prowess have kept it ahead. The owner of Zara is known for speedily reacting to changing trends and weather by keeping its manufacturing bases close to its distribution centre in the northern Spanish region of Galicia. Items are designed, made and shipped to stores often in less than a month, which boosts its profitability.
Items such velvet dresses, military blazers and mini-skirts helped push sales up 14.5 per cent in local currencies in the nine months to October 31. Net profit was up 9 per cent at €2.2 billion ($2.3 billion) while earnings before interest, tax, depreciation and amortisation (EBITDA) were up 8.4 per cent at €3.6 billion, both results in line with anaysts' forecasts, according to a poll.
