Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Zara owner Inditex sees sales and profits rise despite Ukraine war hit

Zara owner Inditex has posted a jump in first-quarter sales and profit despite a 216m euro (£184m) hit from Russia’s invasion of Ukraine and lockdowns in China (Yui Mok/PA)
Zara owner Inditex has posted a jump in first-quarter sales and profit despite a 216m euro (£184m) hit from Russia’s invasion of Ukraine and lockdowns in China (Yui Mok/PA)

Zara owner Inditex has posted a jump in first-quarter sales and profits despite a 216 million euro (£184 million) hit from Russia’s invasion of Ukraine and lockdowns in China.

The Spanish fast fashion giant said the provision would cover costs for the year of the temporary closure of all its stores and online sites across Ukraine and Russia.

It nevertheless saw net income soar 80% to 760 million euros (£646 million) in the three months to April 30 after sales leapt 36% to 6.74 million euros (£5.7 million) as strong growth globally also offset the impact of Covid restrictions across its 67-strong chain in China.

The group said trading was boosted by the strong return of customers to stores since pandemic restrictions have lifted.

But this meant online sales eased back, falling by 6% year on year.

Inditex added that the second quarter has seen sales rise 17% so far since May 1, although growth has slipped further to 13% in the last two weeks.

Inditex said that without the Ukraine and Russia provision, profits would have been 940 million euros (£799 million) in the first quarter.

It halted trading across its 79 stores and online sites in Ukraine on February 24, then temporarily closed its 502 shops and websites in Russia from March 5.

Laura Hoy, equity analyst at Hargreaves Lansdown, said: “Zara parent Inditex’s first quarter results proved consumers aren’t ready to give up on their looks just yet.

“Despite the ever-present cost-of-living crisis, people continued to flock to Inditex stores.”

Already a subscriber? Sign in

[[title]]

[[text]]