The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Sales at fashion retailer Inditex fell 14% in the three months from August to October, recovering from a drop of 31% in the previous quarter, although store-based sales saw a significant impact due to COVID-19 restrictions in November.
The Spanish owner of Bershka and Massimo Dutti said that while 21% of stores were closed in November, most re-opened in the first week of December, with 8% of stores currently closed with an additional 10% at weekends.
However, a signficant proportion of stores are still operating with restrictions, Inditex said.
Sales of apparel in Europe remain 9.5% below pre-crisis levels in October, Eurostat data showed. Inditex and rival H&M reported their first-ever quarterly loss earlier this year as lockdowns shuttered stores and stifled demand for new clothing.
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H&M said on Tuesday its net sales fell 10% in local currencies in its fourth quarter, with an accelerating slowdown towards the end of the September-November period.
Inditex said its third-quarter net profit reached 866 million euros, in line with a rebound in profit reported in the second quarter, but still down 26% on the year-ago period.
Total sales reached 6.05 billion euros in the third quarter, with online sales continuing to grow at 76% above last year.
Inditex’s results were in line with analysts’ forecasts of an 11-15% sales drop.
By Victoria Waldersee; editors: Sonya Dowsett and Alexander Smith.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.
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