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Zara Owner Inditex’s Quarterly Profit Jumps 80% on Post-COVID Wardrobe Renewals

Zara's logo is displayed on a window, at one of the company's largest stores in the world, in Madrid, Spain, April 7, 2022. (Reuters)
Zara's logo is displayed on a window, at one of the company's largest stores in the world, in Madrid, Spain, April 7, 2022. (Reuters)
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Zara Owner Inditex’s Quarterly Profit Jumps 80% on Post-COVID Wardrobe Renewals

Zara's logo is displayed on a window, at one of the company's largest stores in the world, in Madrid, Spain, April 7, 2022. (Reuters)
Zara's logo is displayed on a window, at one of the company's largest stores in the world, in Madrid, Spain, April 7, 2022. (Reuters)

Fashion giant Zara's owner Inditex reported on Wednesday its net profit in the February-April period jumped 80% to 760 million euros ($812.06 million), in line with analysts' expectations as sales surpassed pre-pandemic levels.

Sales at the world's largest fast fashion retailer reached 6.7 billion euros, 36% more than a year ago.

In the period in 2019, before the coronavirus pandemic struck, Inditex reported a profit of 734 million euros and sales of 5.93 billion euros.

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Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
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Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)

Birkin-bag maker Hermes reported a 13% rise in second-quarter sales on Thursday, demonstrating the continued appetite from wealthy shoppers for its luxury handbags, even as less affluent consumers pull back.

Sales at the French luxury group grew to 3.7 billion euros ($4.02 billion), a 13% organic sales rise that strips out currency fluctuations. The figure was in line with analyst expectations, according to a Visible Alpha consensus.

Operating profit for the first half was 3.1 billion euros, compared to a forecast from consensus provider Visible Alpha for 3.2 billion.

One of the most steady performers in the luxury goods sector -- even as economic conditions worsen -- the French group's results stand out after a string of disappointing earnings updates from peers which have raised investor concern about uncertain prospects for the sector in the coming months.

Hermes' famously classic designs and tight management of production and stock have helped reinforce the label's aura of exclusivity, and CEO Axel Dumas told reporters the company had seen "no big interruption in trends".

However, he said Hermes was seeing slightly less traffic with aspirational clients, which was impacting higher volume products like fashion accessories.