The owner of the Zara stores is again in profit. And he exceeded expectations

The Spanish clothing company Inditex is again in profit despite a significant drop in sales due to the coronavirus crisis. The company, which owns, among others, the Zara chain, announced that it earned 214 million euros (almost six billion CZK) in the second quarter after losing 409 million euros in the previous three months.

The quarterly profit significantly exceeded the expectations of analysts, who, according to a Reuters survey, estimated it at an average of 96 million euros.

Total sales fell 31 percent year-over-year in the second quarter, but their decline slowed from 44 percent in the first quarter. The company continued to register strong growth in Internet sales, which increased by 74 percent in the first half of the year.

The company said its online sales continued to grow sharply in the third quarter, while sales of brick-and-mortar stores are gradually recovering. The company noted that in May, up to 87 percent of its stores were closed due to the spread of coronavirus, while 98 percent of stores are now open.

Inditex owns a total of eight brands, in addition to the Zara brand, for example, Massimo Dutti, Bershka, Pull & Bear, Stradivarius, Uterqüe and Oysho. The company was founded by Amancio Ortega, who is now one of the richest people in the world. The first Zara store was opened by Inditex in 1975 in the Spanish city of La Coruña. In December 1988, it began selling outside Spain, in Portugal.

The company started operating in the Czech Republic in 2001. The company has more than 7,000 stores in about a hundred countries.

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