Despite a pause in business from Russia and Ukraine, net income of Inditex during the first fiscal quarter ended April 30, soared. The parent company of brands like Zara and Bershka recorded 80 per cent hike in Y-o-Y profit to €760 million with robust performance across all regions and in the US in particular. The company has incurred €216 million in costs to cover all extraordinary expenses resulting from temporary closure of business in Ukraine and Russia. It has closed all stores in the region since late February.

Revenues grew 36 per cent to €6.74 billion. China was the only market that underperformed with 67 stores being closed during the period due to COVID-related restrictions. Óscar García Maceiras, CEO, Inditex, attributed the strong results to a well-differentiated business model and the excellent performance of creative, sales and operating teams. The company’s sales increased 17 per cent in constant currency between May 1 and June 5. It has made constant progress on delivering its sustainability targets

The company has signed a three-year agreement worth over €100 million with Infinited Fiber Company to purchase 30 per cent of the fiber produced by Infinna, entirely from textile waste.

A part of Inditex’s Sustainability Hub, the project is an open innovation platform created to promote and to scale up innovation in materials, technologies, processes and sustainable solutions.