Madrid — Inditex’s quick-reaction strategy allowed the operator of Zara stores to reduce inventory in the middle of Covid-19 lockdowns, buoying first-half earnings.
The world’s largest clothing chain operator has shown steady improvement after suffering its only loss on record in the first quarter. Chair Pablo Isla is motoring on with a plan to invest about $3bn in e-commerce, renovations and new stores over the coming three years to better position Inditex when the pandemic ends.
The results come a day after H&M reported higher-than-expected quarterly earnings. Inditex’s Swedish rival has, however, been struggling to get rid of unsold garments, and its $4.6bn inventory position was at a record proportion of sales at the end of May.
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