Zara owner Inditex hit by currency swings and warm weather
Sales growth slows slow to 3 per cent in six months to end of November
Shares in Zara owner Inditex fell more than 4 per cent after it missed forecasts with a 3 per cent rise in group net sales over the first nine months of 2018. Photograph: Susana Vera/Reuters
The owner of high-street fashion giant Zara has become the latest retailer to take a weather hit after the unusually warm autumn left it nursing lower-than-expected sales and profits.
Spanish parent group Inditex saw like-for-like sales growth slow to 3 per cent in the six months to the end of November after an “extraordinarily warm September”, although growth bounced back to 5 per cent in October and November.
The world’s largest clothing retailer chose not to cut prices of clothing since September, unlike rivals who sought to offset the hit to demand for autumn ranges.
Shares in Inditex fell more than 4 per cent after it missed forecasts with a 3 per cent rise in group net sales over the first nine months of 2018 and a 4 per cent increase in net profits to €2.4 billion.
It comes after British clothing label Superdry also warned over annual profits after an unseasonably warm weather dented sales of jackets and winter clothing. – PA