Zara-owner Inditex has surged past H&M in its second quarter sales. Inditex’s recovery during the quarter was boosted by remaining best-in-class in speed and from a strong overall recovery in its core market Spain. Better sales in China helped Inditex race ahead of H&M, which suffered owing to criticism of alleged human rights abuses in the Xinjiang region.
As per an analysis by Refinitiv SmartEstimates, Inditex’s sales during the second quarter increased 48 per cent year-on-year to € 7.02 billion. Growth during the quarter was supported by lower store closures and slightly improved backdrop. The group’s net profit during the quarter increased 307 per cent year-on-year to €872 billion. Analysts at Alantra Equities say, lifting of travel restrictions, unwinding of remote working and the return of social are expected to boost demand for fashion apparel across Europe.
Third quarter sales of Swedish H&M's sales during the June-August period increased by 14 per cent year-on-year, adds Refinitiv SmartEstimates. The brand’s sales in China were hit in March as it was wiped off Tmall and domestic phonemakers' app stores after it expressed concerns about alleged human rights abuses in the Xinjiang region in 2019.
