Madrid: Zara owner Inditex, the world's largest fashion retailer, has announced higher profits for the first nine months of its fiscal year despite facing increased competition from low-cost clothing outlets like Shein and Primark. The Spanish group, which also owns popular brands such as Massimo Dutti, Pull and Bear, and Bershka, reported a net profit of 4.6 billion euros ($5.3 billion) between February 1 and October 31.
According to Bangladesh Sangbad Sangstha, Inditex attributed the profit rise to "satisfactory" sales both in stores and online, which increased by 2.7 percent, reaching 28.2 billion euros. Inditex CEO Oscar Garcia Maceiras, during a news conference, highlighted a "solid start" to the fourth quarter, with sales rising 10.6 percent in November compared to the same period last year.
As the budget fashion segment rapidly expands with brands like Shein capturing market share, Inditex's main brand Zara has shifted its focus to cater to more discerning shoppers by offering higher-priced clothing. Additionally, Inditex is enhancing its logistics to expedite online order deliveries and investing in larger, more modern stores while closing smaller outlets.
The company also reported significant relocations and refurbishments at its stores in Osaka, Maastricht, and Barcelona. Furthermore, it has launched a major new distribution hub in Zaragoza, northeastern Spain, which is now operational.