Zara owner Inditex (ITX.MC) posted a 24% increase in net profit for the first nine months of its fiscal year, as price rises helped offset weakening global demand for clothing.
The world’s biggest fashion retailer’s store and online sales rose 19% from a year ago, slightly faster than analysts had expected. Price rises of 5% or more across some ranges since the spring helped drive sales, analysts said.
The company, whose brands also include Massimo Dutti and Bershka, rose to 3.1 billion euros ($3.3 billion) from 2.5 billion euros a year ago.
Shares in Inditex were up 2% in mid-morning trading.
The company has outperformed some rivals since Marta Ortega, the daughter of the founder-owner Amancio Ortega, took the helm as non-executive chair in April.
“The sales outperformance may reflect the quality of the product design and offering as well as the more attractive price point compared to peers as price increases appear to be less than the wider market,” said Deutsche Bank analyst Adam Cochrane.
This report’s information was first seen on REUTERS; to read more, click this link.
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