Zara pulls ahead of H&M in race to lift sales

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Zara pulls ahead of H&M in race to lift sales
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The world’s biggest fashion retailer’s sales in the quarter edged above levels seen before the Covid-19 pandemic

A worker decorates the shop window at a Zara store in Majadahonda, near Madrid, Spain. Picture: REUTERS/SERGIO PEREZashion brand Zara, Inditex, has outpaced Swedish rival H&M in its efforts to bounce back from the coronavirus crisis, with second-quarter sales rising above pre-pandemic levels.

Inditex executive chair Pablo Isla said that sales in stores and online were progressively recovering across all brands and markets, despite some restrictions in Asia due to the pandemic. The Spanish company’s second-quarter net profit of €850m was higher than the €214m booked in the same period in 2020 and 4% higher than the profit in 2019.

Inditex said shop and online sales at constant exchange rates between August and the first week of September were 22% higher than a year ago and 9% higher than in the same period of 2019. Inditex said 99% of all of its stores have reopened and is currently operating 6,654 stores worldwide compared with 7,337 stores a year ago.

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