Zara owner Inditex boosted by pick-up in Spring sales

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Zara owner Inditex reported a pick-up in recent sales from its Spring/Summer collections, boosting its shares on Wednesday as the world’s top fashion retailer delivered quarterly results in line with expectations.

The Spanish company said sales rose 12% between May 1 and June 3 from the same time the year before, helping to lift its shares almost 5% to a one-month high in early trading. Rival H&M ‘s shares were up 1.8%.

Inditex also reported a 7% rise in sales for its first quarter to the end of April, an expected slowdown from a year earlier when it benefited from a post-pandemic shopping spree.

The company, whose brands also include Pull&Bear and Massimo Dutti, is battling intense competition from the likes of H&M, Shein and Temu by chasing and delivering fashion trends faster through investment in logistics and technology.

Inditex has outperformed competitors in recent quarters, benefiting from investments in new stores and online experiences such as livestream shopping, where consumers can stream shows presenting fashions online and easily click to buy.

CEO Oscar Garcia Maceiras told analysts the company would expand livestream services through its own platforms to markets including the United States and Britain following good results in China.

“We expect to launch this new service in the coming weeks,” he said, adding the company would also boost store selling space by about 5% a year until 2026 after improving or opening stores in 28 markets in recent months. Inditex now has 5,698 shops.

The company also launched its upmarket Massimo Dutti brand on JD.com in China in the quarter.