Key facts
- Inditex reported 9% currency-adjusted sales growth in August.
- Second-quarter sales (May-July) reached €11 billion.
- Inditex's share price hit a record of €59.1 last month.
- The company is expanding its Lefties brand into Britain and plans to open in Germany next year.
- Inditex reported weaker than expected second-quarter profit due to increased costs from the Middle East conflict.
Zara owner Inditex reported a profit miss for its second quarter, impacted by increased costs stemming from the Middle East conflict, despite a strong start to autumn trading. The company announced currency-adjusted sales grew 9% in August, exceeding expectations even as heatwaves affected shopping habits in its largest market. Second-quarter sales, from May to July, reached €11 billion ($12.8 billion). Inditex's share price hit a record of €59.1 last month. The company is expanding its budget brand, Lefties, into Britain and plans to open stores in Germany next year. Earlier in the year, Inditex posted an 11.5% currency-adjusted sales growth in May and 8.8% for the first quarter. Inditex's investor relations director, Gorka Garcia-Tapia Yturriaga, noted the performance was significant given macroeconomic and geopolitical challenges. Chief Financial Officer Andres Sanchez stated that Inditex has adapted its supply chain to mitigate disruptions from global conflicts, with the impact of higher transport and fuel costs limited in the first quarter. Zara has also focused on larger stores and increased prices, particularly in the United States.