Zara owner Inditex - the world's biggest fashion retailer - says sales have recovered to pre-pandemic levels over the past month, with the vast majority of its stores now open
Profit of €421m was better than expected and compared to a loss of €409m in the same period of 2020, but again also shy of the group's 2019 performance.
"The results have been materially affected by the health crisis, with temporary store closures and restrictions to operations in key markets such as the UK, France, Germany, Italy, Portugal and Brazil," Inditex said.For the first quarter, online sales were 67% up on the same period last year.The group said last year that it was to close up to 1,200 stores worldwide by the end of 2021. Its profits fell by 70% to €1.1bn for the year to the end of January.
Chloe Collins, head of apparel at consultancy GlobalData, said:"COVID-19 continued to severely impact Inditex in Q1 as its key market Europe was badly hit by a third wave of the pandemic. "However, as almost all stores have now reopened, and social restrictions gradually relax, Q2 results are set to show a very different story."This demonstrates the true potential of Inditex's brands - particularly trophy brand Zara, which is in a prime position to benefit from the reopening of retail."this week showed clothing retailers enjoyed a bounce last month as consumers sought new outfits as socialising in pubs and restaurants returned.
Last month, UK fashion group Next revealed a sharp improvement in sales in the weeks after non-essential retailers were allowed to reopen in April, citing pent-up demand.
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