Shoppers carrying Zara branded bags on the Passeig de Gracia in Barcelona, Spain, Friday, December 16, 2022.
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Zara owner Inditex on Wednesday reported a 27% net profit increase in 2022 as sales exceeded pre-pandemic levels in the first full year since Marta Ortega, daughter of company founder Amancio Ortega.
In-store and online sales for the world’s biggest fashion retailer reached 32.6 billion euros ($34.99 billion), up 18% from the 27.71 billion euros posted last year and up 15% from 2019, which That was before the pandemic.
The company’s net income rose to 4.1 billion euros ($4.40 billion).
The fashion giant’s revenue was in line with analysts’ expectations as the company benefited from shoppers’ appetite for fashion in the post-Covid period.
In the early spring, Zara raised its prices by 5% or more to beat inflation, according to analysts at Deutsche Bank, UBS and Royal Bank of Canada. This move did not curb the demand for its clothes.
Strong results from Inditex will allay early investor concerns about Marta Ortega succeeding veteran Pablo Isla as non-executive chairman in April, in a generational handover that began a decade ago when her father retired Was.
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