Inditex, the major clothing company from Spain, has shown some strong growth online. The retail group is taking more and more steps in its digital transformation and that’s not without results. For the first time, Inditex processed one million orders in one day.
The corona pandemic has had a major impact on the physical stores from Inditex brand such as Zara, Pull & Bear, and Bershka, but overall, the company already returned to profitability in the second quarter of this year.
Net profit of 214 million euros in second quarter
It achieved a gross operating profit of 1 billion euros and a net profit of 214 million euros in this period. Those are nice numbers, taken into account that the figures turned red in the first quarter (409 million euros loss), as a result of the corona pandemic.
Third quarter shows further return to normality
Inditex says the third quarter continues to see a progressive return to normality, with online sales growing sharply and store sales gradually recovering. The company’s turnover reached 8 billion euros and the decline for the first half of this year was -37 percent. In the second quarter, the fall in sales slowed down to -31 percent, from a decline of -44 percent in the first three months of 2020.
Inditex Group’s turnover reached 8 billion euros during the first half of 2020.
The company’s growth in online sales remained very high, with a 74 percent growth year-on-year in the first six months. The company even received one million orders in a day for the very first time.
CEO Pablo Isla emphasized that “the recovery and strong performance are due to the hard work, engagement, and creativity of everyone in Inditex”. He adds: ” I am particularly pleased with our online sales growth, which demonstrates the critical importance of our integrated store and online platform strategy. This is a cornerstone of our unique business model with three key pillars flexibility, digital integration, and sustainability. Day by day this combination is proving its solidness.”
I am pleased with our online sales growth.