Inditex, the owners of fashion chain Zara, has revealed it has returned to profit following the negative impact of the Covid-19 pandemic, posting net profits of €1.27bn (£1.08bn) for the first half of the year ended 31 July 2021.
The high profit intake compares with a previous year’s loss of €195m (£166m) in the first half of 2020 where the impact of both Covid-19 and lockdown restrictions affected trade.
Revenue for the period reached €11.94bn (£10.2bn), up 49% year-on-year and was boosted by online sales which the group said are expected to account for more than 25% of total sales for the year.
Cash generation remained strong during H1 with the group´s net cash position reaching an “historic high” of €8bn (£6.8bn).
Pablo Isla, executive chairman, Inditex, said: “The strong performance is the result of the commitment displayed by everyone at the company and their continued focus on delivering top creative and quality fashion.
“Thanks to all of them we are reaping the benefits of the strategic and sustainable transformation in our unique business model.”