Investors punish Zara owner Inditex over spending plans

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Investors punish Zara owner Inditex over spending plans
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Zara owner Inditex said its spring-summer 2023 collection flew off shelves over the last six weeks, but shares in the world's biggest fashion retailer fell after it flagged higher spending on technology and automation

In-store and online sales rose 18% to 32.6 billion euros and were 15% higher than in 2019.

Excluding Russia, where Inditex stores have been closed since the Ukraine conflict started, sales between Feb. 1 and March 13 were up 17.5% from the same period a year earlier. Store optimisation has left Inditex with "bigger, better and more beautiful stores in the best retail destinations globally," Maceiras said. Store sales in 2022 grew by 23% despite store space decreasing by 6%.

"The U.S. offers significant untapped potential for Inditex, given it has less than 100 stores in the country and just 0.5% market share ," Morningstar analyst Jelena Sokolova said.

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