Zara owner Inditex returns to profit in second-quarter

Zara owner Inditex returns to profit in second-quarter

Fashion retailer Inditex , owner of Zara, returned to quarterly profit in the three months from May to July but reported sales down 31per cent on the year-ago period as virus-wary consumers stayed away from city centre shopping districts.

FILE PHOTO: Staff wearing protective mask waits for customers at the entrance of a Zara store, amid
FILE PHOTO: A staff wearing protective mask waits for customers at the entrance of a Zara store, amid the coronavirus disease (COVID-19) outbreak in Kuala Lumpur, Malaysia May 27, 2020. REUTERS/Lim Huey Teng/File Photo

MADRID: Fashion retailer Inditex , owner of Zara, returned to quarterly profit in the three months from May to July but reported sales down 31per cent on the year-ago period as virus-wary consumers stayed away from city centre shopping districts.

The owner of Massimo Dutti and Bershka said 98per cent of its stores were open again. Looking to the new financial period, it said sales in store and online were 11per cent lower at constant exchange rates from Aug. 1 to Sept. 6 from the year-ago period.

Shares closed 5per cent higher on Tuesday after Swedish rival H&M beat quarterly profit forecasts as it bounced back faster than expected from the pandemic-induced slump. Inditex's stock has fallen 24per cent in the year so far.

(Reporting By Sonya Dowsett, Editing by Inti Landauro)

Source: Reuters

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