Zara owner Inditex posted a 14% rise in third-quarter net income as the company pursues its rapid online expansion. The rise reaffirmed Inditex expectations of like-for-like sales growth in the 4%–6% range for the full year.
Net income totaled 1.2 billion euros for the quarter, with an extra boost from changes in the IFRS accounting rules that change how companies report property rentals.
The company did not break down quarterly sales but said that they grew at 7% in the first nine months, in keeping with the pace set earlier in the year.
In September and October, the company launched online services in South Africa, Colombia, the Philippines and Ukraine.
Inditex has been charging ahead of rivals with state-of-the-art logistics systems, while it spruces up store networks. It plans to fully integrate online and in-store stockrooms by next year.
The Spain-based fast-fashion retailer’s logistics systems are helping the company focus on full-price sales. This has given the retailer an advantage over rivals, which have suffered from getting caught up in discount spirals.
Revisiting its store network, Inditex has been focusing on more choice locations, opting for sprawling flagships in city centers while closing less attractive stores. Analysts estimate that overall retail space is likely on the rise, given the emphasis on larger stores.
This story was reported by WWD and originally appeared on WWD.com.
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