Inditex aims at being a pure player by 2020. In the second quarter, Inditex sales are expected to be up eight per cent, though demand is dropping. The first quarter was the most profitable for Inditex since 2013. Sales moderately rose by 4.8 per cent compared to the 4.5 per cent of the fourth quarter of 2018.
Inditex is one of the best positioned in the market, and at the same time it continues to sell through its stores and its online channel. The political instability may not affect the group. Despite this, the Spanish giant is not excluded from the currency effect that could probably erode its margins in the second quarter. Inditex still swims in turbulent waters, with the shade of a recession in several European counties, a weakened consumption and retail in a transformation phase.
Meanwhile competitor H&M closed its second quarter with a rise of 11 per cent in sales. Gap’s sales in the same quarter fell by four per cent. And sales at Fast Retailing fell by 7.3 per cent. Gap is in the middle of a restructuring. Fast Retailing is undertaking international expansion and H&M has started embracing digitalization after two consecutive fiscal years with disappointing results.
