MADRID, March 15 (Reuters) – Zara owner Inditex (ITX.MC) on Wednesday posted a 27% net profit increase in 2022 as sales exceeded pre-pandemic levels in the first full year since Marta Ortega, daughter of founder Amancio Ortega, took over at the helm of the company.
In-store and online sales for the world’s biggest fashion retailer reached 32.6 billion euros ($34.99 billion), 18% more than the 27.71 billion euros posted last year and 15% higher than in 2019, before the pandemic hit.
The company net income soared to 4.1 billion euros ($4.40 billion).
The fashion giant revenues were in line with what analysts expected as the company benefited from shoppers’ appetite for fashion in the post-Covid period.
Early in the spring Zara had raised its prices by 5% or more to mitigate inflation, according to analysts at Deutsche Bank, UBS and Royal Bank of Canada. The move didn’t curb the demand for its garments.
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Inditex’s strong results will appease initial investor concerns about Marta Ortega succeeding the veteran Pablo Isla as non-executive chair in April, in a generational handover that began a decade ago when her father retired.
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Reporting by Corina Pons, edited by Inti Landauro
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