The owner of fashion retailer Zara, Inditex, returned to quarterly profit in the three months from May to July despite a 31 per cent fall in sales as the coronavirus crisis kept consumers away from city centre shopping districts.
The owner of the Massimo Dutti and Bershka brands said on Wednesday that 98 per cent of its stores had reopened.
In the current quarter, sales in store and online from August 1st to September 6th at constant exchange rates were down 11 per cent from a year earlier.
Inditex reported a second-quarter net profit of €214 million, beating the €96 million mean forecast from Refinitiv’s SmartEstimate model, which is weighted towards more recent estimates and higher-ranked analysts.
It saw a 74 per cent jump in online sales in the first half, a trend seen at other apparel retailers as well, as shoppers bought from home with many stores closed and movement restrictions in place.
Inditex shares closed 5 per cent higher on Tuesday after Swedish rival H&M beat quarterly profit forecasts. The stock is down 24 per cent this year.
For the first half, it reported a net loss of €195 million on sales down 37 per cent.
It said it would have reported a profit had it not booked a €308 million charge related to its integration of its store and online platforms.