# Zara owner Inditex sales rebound to top pre-pandemic levels Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-09-15 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Inditex Surpasses Pre-Pandemic Sales Levels with 850M Euro Profit Meta Description: Inditex, Zara's parent company, reports an 850 million euro profit in Q2, surpassing H&M's sales post-pandemic. Discover more about the fashion URL: https://financedigest.com/zara-owner-inditex-sales-rebound-to-top-pre-pandemic-levelshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-09-15t074414z1lynxmpeh8e0b6rtroptp4inditex-h-m-preview-1736837881974-compressed.jpg) MADRID (Reuters) – Fashion brand Zara owner Inditex rebounded with an 850 million euro second-quarter profit on Wednesday as sales topped pre-pandemic levels, outshining Swedish rival H&M. The world’s biggest fashion retailer’s sales bounced back and slightly surpassed the level seen before the pandemic as most stores reopened and people rushed to renew their wardrobe after store closures imposed to curb the spread of the virus. The Spanish company’s second-quarter net profit was higher than the 214 million euros ($181.14 million) booked in the same period in 2020 and 4% higher than the profit in 2019. Swedish rival H&M, the world’s second-biggest fashion retailer, on Wednesday said [sales grew less than expected from a year ago in the three months](https://www.financedigest.com/uk-new-car-sales-rise-17-in-march-best-ever-month-for-evs.html "UK new car sales rise 17% in March; best ever month for EVs") through August, and remained lodged below pre-pandemic levels. Although fashion retailers are recovering from the impact of the pandemic, the [recent spread](https://www.financedigest.com/german-yields-steady-spreads-tighten-after-recent-repricing.html "German yields steady, spreads tighten after recent repricing") of the Delta variant of the coronavirus means some restrictions have been reintroduced, while many industries face supply problems due to a shipping container shortage and other bottlenecks. Inditex said [sales accelerated in the May-July period](https://www.financedigest.com/uks-wetherspoon-posts-13-1-rise-in-sales-for-25-wk-period.html "UK’s Wetherspoon posts 13.1% rise in sales for 25-wk period") to 6.99 billion euros, 7% higher than in the same period in 2019, as shoppers started buying clothes again for summer social events to enjoy their new freedoms made possible by vaccination campaigns. The sales during the second [quarter were in line with the 7.02 billion euros](https://www.financedigest.com/euro-having-a-laugh-a-quarter-of-brits-take-the-wrong-currency-on-holiday.html "Euro having a laugh: a quarter of Brits take the wrong currency on holiday") expected by analysts polled by Refinitiv. Inditex said shop and online [sales at constant exchange rates between August and the first week of September were 22%](https://www.financedigest.com/logitech-quarterly-sales-fall-22-as-slowdown-fears-bite.html "Logitech quarterly sales fall 22% as slowdown fears bite") higher than a year ago and 9% higher than in the same period of 2019. Analysts said consumers have shifted their spending recently to focus on fashion workwear as [big cities](https://www.financedigest.com/downsizers-in-the-big-city-why-wembley-park-is-the-place-to-be-for-those-who-want-more-for-less.html "Downsizers in the big city – why Wembley Park is the place to be for those who want more for less  ") slowly return to normality and most lockdowns are lifted, a trend which is benefiting large fashion retailers such as the Inditex brands. During the pandemic, Inditex strengthened its [digital retail platform and shut its smaller outlets worldwide in favour](https://www.financedigest.com/snap-happy-79-of-brits-ditch-digital-cameras-in-favour-of-phone-photos.html "Snap Happy: 79% of Brits ditch digital cameras in favour of phone photos") of expanding flagship stores able to function as mini distribution hubs. Inditex said 99% of all of its stores have reopened and is currently [operating 6,654 stores](https://www.financedigest.com/kfc-franchisees-in-russia-ask-govt-to-halt-sale-of-stores-to-local-operator-ria.html "KFC franchisees in Russia ask govt to halt sale of stores to local operator – RIA") worldwide compared with 7,337 stores a year ago. Inditex online sales rose 36% in the first half compared with the same period in 2020, when restrictions on mobility in key markets including Britain, Germany and France forced shoppers to [buy from home](https://www.financedigest.com/think-big-make-your-new-years-resolutions-to-buy-a-holiday-home-in-2017.html "Think big – make your New Year’s resolutions to buy a holiday home in 2017!"). The company expects online [sales to exceed 25% of total sales this year](https://www.financedigest.com/uk-car-sales-hit-30-year-low-in-2022-but-could-grow-15-this-year-smmt.html "UK car sales hit 30-year low in 2022, but could grow 15% this year – SMMT") and will launch a men’s sports collection under the name Zara Athleticz at the end of September. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 109% to 3.1 [billion euros, closed to the 3.4 billion reported](https://www.financedigest.com/australias-macquarie-explores-6-billion-deal-for-britains-mg-sky-news-reports.html "Australia’s Macquarie explores billion deal for Britain’s M&G, Sky News reports") in 2019. ($1 = 1.1814 euros) (Reporting by Corina Pons, editing by Inti Landauro, Keith Weir and Jane Merriman) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---