Inditex, the world's biggest clothing retailer and owner of the Zara brand, posted a 9 percent rise in first-half profit but gross margin as a percentage of sales slipped from the year-ago period due to the stronger euro. Ciara Lee reports.
It may be the world's biggest clothing retailer. But what happens closer to home impacts Inditex. The Spanish owner of Zara posted a 9 percent rise in first-half profit. But gross margin as a percentage of sales slipped from a year ago due to the stronger euro. Inditex's business model of responding to catwalk trends in small batches of clothing has allowed it to consistently outperform rivals like Sweden's H&M It makes the bulk of its sourcing in Europe so it can respond quickly And it generates more than half of its sales in non-euro currencies. Net profit came in at 1.37 billion euros, slightly missing forecasts. And prompting shares to fall over two percent on the news. The company though says things are looking up with its Autumn/Winter collections going down well. And recent sales looking strong in its more than 7,000 stores worldwide.