In the past quarter the owner of Zara has posted £363m losses after 90% of their stores closed due to the pandemic.
Inditex who owns Bershka and Pull & Bear chains said their net sales dropped by 44.3% to €3.3bn in the period, even with a 50% increase in sales.
Inditex executive chairman Pablo Isla said, “Our priority through the crisis has been and continues to be the health and safety of our people and our customers.
“I would like to publicly thank all of our people for their tremendous commitment throughout the global health crisis and during the gradual return to our stores and operating facilities.
“I would like to highlight how they have consistently followed the appropriate protocols, which has delivered a consistent message of responsibility.”
Sophie Lund-Yates, equity analyst at Hargreaves Lansdown said, “The combination of ambitious plans and weak sales has taken something of a hammer to profits and the end of lockdowns won’t automatically translate into normal sales volumes.
“That said, Inditex is pivoting in the right direction, and if investors are prepared to take a longer-term view, this Spanish powerhouse is in a better position than most of its peers.”
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