Zara owner Inditex’s ‘fast fashion’ approach continues to keep the company ahead of competition, posting an 11 percent rise in sales on Wednesday.
Net sales rose to 16.4 billion euros compared with the same period last year, with net profit for the nine months to the end of October up 9 percent at 2.2 billion euros.
Zara’s party season outfits pushed sales up in November, going against the general trend in the sector. Velvet dresses, military blazers and mini skirts increased sales by 14.5 percent in local currency terms.
Analysts at Liberum commented on the impressive performance:
Few other major clothing retailers can match the mid-teens [percentage] sales growth that Inditex has achieved in difficult global markets this year,” analysts at Liberum said.
“The company’s clear focus on achieving full-price sales underpins high and stable margins.”
Inditex has faster production line than other companies, having manufacturing bases close to their main distribution centre in Galicia, northern Spain. It mean products can go from design to shipping in less than a month, allowing the chain to adapt quicker to changing trends and boosting profitability.