Zara owner’s good half-year earnings due to locally made clothes
Inditex, which was able to reduce stock during the lockdowns, softening blows to earnings, also had a 74% surge in online orders
16 September 2020 - 19:06
Madrid — Inditex’s quick-reaction strategy allowed the operator of Zara stores to reduce inventory in the middle of Covid-19 lockdowns, buoying first-half earnings.
The Spanish clothing retailer managed to reduce stock-in-trade by 19% at the end of July, taking advantage of flexible purchasing agreements that allow the company to rapidly adapt to changes in demand. That softened the blow to earnings, which exceeded analysts’ estimates even though they were less than half last year’s level. The stock rose as much as 6.7% on Wednesday morning...
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