Zara owner Inditex reports record sales in first-half

By Alyssa McMurtry

OVIEDO, Spain (AA) - Zara owner Inditex on Wednesday reported record sales and profits in the first half of 2022, but said it is preparing for more supply chain issues in the next six months.

"In the face of possible supply chain tensions" in the second half of the year, the fast fashion brand said it has accelerated manufacturing to stockpile garments from its autumn and winter collections.

As of Sept. 11, inventory levels were 33% higher than at the same time last year.

While the company did not specify the supply chain threats, the retail sector is grappling with rising energy and commodities costs, as well as continued COVID-19 lockdowns in China.

Yet despite economic headwinds in the first half of the year, including shutting down business in Russia and soaring inflation across the globe, Inditex's customers continued shopping.

Compared to the first half of 2021, the company's sales jumped 24.5% to €14.8 billion ($14.8 billion) and net income surged by 41% to €1.8 billion.

Inditex is the owner of the retail brands Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius and Oysho.

The company says it continues to see strong growth opportunities going forward, underpinned by investment in retail stores, advances in online sales channels and improvements to logistics platforms.

After reporting results, the Inditex stock price jumped by more than 5%.