Zara Parent Company'S Net Sales Increased 11.1% In The First Half Year.

Competitors blame sales conditions for weather conditions.

parent company

The SA (ITX.MC) India India Textile Group is still unestablished. In the first half of fiscal year, the net sales of the world's largest apparel retailer increased by 11.1% over 10 billion euros.

Inditex SA (ITX.MC) shares rose 1.6% early on Wednesday.

As of the first half of July 31st, Inditex SA India India Textile Group achieved a profit of 1 billion 606 million euros, better than that of India and India.

The expected 1 billion 580 million euro is 7.9% higher than 1 billion 489 million euros a year ago.

Net profit also increased by 7.1% to 1 billion 256 million euros per year, slightly better than the market expected 1 billion 250 million euros.

The core profit of EBITDA 21.1 billion is also in line with the market forecast of 2 billion 100 million euros, up 7.2% over the same period last year.

In the first 7 weeks of the three quarter of August 1st -9 18, group sales were 13% growth at the local exchange rate, slowing down from 16% in the first half of the year, but far more than the 7% growth of the world's second largest garment retailer and Mauritz AB (HMb.ST) in 8 month, while Soci e t e G e rale SA (SOGN.PA) bank analysts also expected only 9% growth.

As of July 31st, the group had 7096 stores in the world, and opened 83 stores in the first half of the year. In September 8th, after the Zara brand was first stationed in Vietnam, the retail sales of the global entities expanded to 92 markets. Online sales in the first half of the year have already been laid out in 39 new markets in 11 new districts. In October this year, all brands of the group will launch e-commerce in Turkey.

Pablo Isla Isla, chief executive of Inditex SA, emphasizes the importance of fully integrating physical stores and online channels through technology input.

The strategy promoted sales growth of 11% in the first half, and net sales increased to 9 billion 421 million euros from 10 billion 465 million euros in the same period last year.

Exane BNP Paribas SA (BNP.PA) farba analyst Simon Bowler said that based on the predicament faced by the current clothing retailers, the Inditex's SA and India Indo Textile Group today's earnings report once again reflects the superiority of its business model.

Excluding the first quarter results, the two quarter of the 5 billion 590 million quarter of the Inditex quarter will be achieved in the middle of the first quarter of the year. The net sales of the Indo textile group of SA, the 10.7% quarter, is expected to be 5 billion 570 million euros, with net profit rising 8.8% to 702 million euros, better than the expected Euro 691 million euro.

Throughout its competitors, the data show that the net sales of Hennes & Mauritz AB AB, which is owned by H&M, is only 6.4% to 48 billion 982 million kronor and 5 billion 110 million euros in the last three quarters, and earnings data will be released in September 30th.

The US Gap Inc. NYSE:GPS (NYSE:GPS) was also in a slump. Net sales fell by 1.2% to $3 billion 851 million in the two quarter of July, while net profit plummeted 42.9% to $125 million.

In the first half of the year, all brands of Inditex SA Indo textile group grew, and Zara Home and Zara were 17.1% and 13.3% respectively.

The growth rate of the second to fourth brands Bershka, Massimo Dutti and Pull & Bear and underwear brand Oysho Oysho is between 6.0%-8.5%, and Stradivarius is relatively weak, increasing by only 2%.

Benefiting from the steady economic growth in Spain, the first half of the year, Inditex SA, India and India Group achieved 8% sales growth in the local market which accounted for 17% of the business, while Spanish official data pointed out that the average growth rate of the clothing market in the first three months ended in July was 3%.

Since September, the group has launched mobile payment services in all stores in Spain, involving the group's mobile payment application InWallet. The group said it would extend the service to other markets in the future.

Europe and Spain accounted for 60% of the group's revenues, while Asia and the rest of the world and the Americas accounted for 25% and 17% respectively.

On the results conference call, the group revealed that it plans to open 60 new stores in China this year.

On the other hand, about half of the group's revenue is based on foreign exchange accounting, making it subject to significant fluctuations in exchange rate fluctuations. Kepler Cheuvreux analyst Natalia Bobo pointed out that the weakness of Russian roubles, Mexico pesos, Turkey lira and Sterling weakened the sales figures of the group, while the appreciation of the US dollar also caused damage to the group profits of 35% purchases in Asian countries, but this ratio has already had an advantage over 80% of other retailers such as Hennes, Mauritz, AB, and so on.

65% of the group's purchases are concentrated in Spain, Portugal, Turkey and North Africa, which are closer to the group headquarters, enabling them to produce popular goods more quickly according to demand, trend and even weather.

In the first half of this year, the gross profit margin of the group was 56.8%, down 130 basis points from 58.1% in the same period last year, and the operating profit margin also dropped by 50 basis points to 15.3%.