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Zara reported record profit growth

Sales of the Indetex Group increased by almost 25% for the first half of the year.
Zara has no plans to close stores and is betting on a hybrid model

Spanish Inditex Group, the world's largest fashion retailer, announced a sharp increase in sales and net profit in all regions of its presence. Sales of the owner of Zara and Bershka increased by almost 25% for the first half of the year and reached an absolute record value.

Inditex's turnover rose from 11.9 to 14.9 billion euros in the past six months year over year. Net income rose from €1.27 billion to €1.79 billion. The results were generally in line with analysts' forecasts.
Inditex also reported significant growth in sales through online channels. The company predicts that e-commerce will account for about 30% of the group's revenue by 2024. 

The Spanish fashion giant opened stores in 24 countries during the first half of the year. The number of stores operated by Inditex Group reached 6,370. The company said inventory levels are improving and that supply problems will be fully resolved by the new season. 

"The results are explained by four factors, key to our performance. Our unique fashion proposition, an increasingly optimised shopping experience for our customers, our focus on sustainability, and the talent and commitment of our people." commented Inditex CEO Oscar Garcia Maceiras.

Behind the scenes remains Inditex Group's difficult position in the Russian market. The company closed more than 500 stores across the country back in March. Since then, no official announcements have been made about leaving the market and the company's future in the country remains uncertain. Meanwhile, Inditex continues to pay rent in top Russian malls. And dozens of cases are pending in the courts to recover debts from the group's Russian structures. 

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