Spain’s Inditex says it had a tough first half of the year as it struggled to match a particularly good 2012. The results were among its weakest after years of stellar performance.
Poor weather and unfavourable foreign currency exchange rates eroded profit between January and June though it did manage 951 million euros, which was a one percent increase. That was thanks to strict cost controls and lower tax rates.
The world’s largest clothes retailer, which owns eight brands including Zara, Massimo Dutti and Bershka, reported sales did pick up at the start of the third quarter – rising 10 percent.
Inditex has been expanding aggressively into emerging markets like Russia and China.
It has held up better than some other retailers during the global economic crisis, largely thanks to its “fast fashion” model under which it quickly produces many affordable versions of catwalk trends in small quantities, allowing it to respond quickly to consumer demand.