The daughter of the fashion retail founder leads the empire to a profit of 3.1 billion euros

Zara-owner Inditex saw its net profit rise 24 percent in the first nine months of its fiscal year as price hikes helped offset weaker global demand for clothes.

The world’s largest fashion retailer’s business and online sales grew 19 percent year-on-year, slightly faster than analysts had expected. Price increases of 5 percent or more in some areas since the spring helped boost sales, analysts said.

The company, whose brands also include Massimo Dutti and Bershka, announced that its net profit for the first nine months of the year rose to 3.1 billion euros from 2.5 billion euros a year earlier.

Net income for the quarter rose 6 percent to 1.3 billion euros, in line with market forecasts based on Refinitiv IBES data.

The company has outperformed some of its peers since Marta Ortega, daughter of founder and owner Amancio Ortega, took the helm as non-executive chairman in April.

“The above-average sales performance may reflect the quality of the product design and offering, as well as the more attractive price point compared to competitors, as the price increases appear to be smaller than in the broader market,” said Adam Cochrane, analyst at Deutsche Bank.

Inditex has recently started offering more ‘high fashion’ pieces from Zara, designed for special occasions.

H&M, which has struggled to compete with its larger competitor Zara, will report results on Thursday.

https://www.independent.ie/business/world/daughter-of-fashion-retail-founder-leads-empire-to-31bn-profit-42220131.html The daughter of the fashion retail founder leads the empire to a profit of 3.1 billion euros

Fry Electronics Team

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