By Joshua Kirby
Industria de Diseno Textil SA swung to a net profit for the first quarter of the fiscal year as sales returned to growth, despite continued store closures, the Spanish fashion giant said Wednesday.
Inditex booked net income of 423 million euros ($514.9 million) in the three months to April 30, swinging from a net loss of EUR409 million for the same period the previous year. After successive quarters of sales declines, the company posted an on-year increase of 56% at constant currency to EUR4.94 billion.
Analysts had expected sales of EUR4.85 billion, according to a FactSet-compiled consensus of seven estimates.
Earnings before interest and taxes came to EUR569 million compared with a EUR508 million operating loss previously, making for an EBIT margin of 11.5%.
The retailer, which counts Zara among its brands, said sales had been supported by continued strong growth in online sales, helping to offset a 24% reduction in trading hours due to pandemic-enforced store closures and restrictions.
Inditex said its recovery continues to gain momentum, and that in the current period to June 6, sales had more than doubled on year.
Write to Joshua Kirby at email@example.com; @joshualeokirby
(END) Dow Jones Newswires
June 09, 2021 02:10 ET (06:10 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.