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.
Fast-growing start-ups like Hettas, Saysh and Moolah Kicks created sneakers designed specifically for active women. The sportswear giants are watching closely.
The companies agreed to cap credit-card swipe fees in one of the most significant antitrust settlements ever, following a legal fight that spanned almost two decades.
In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.
The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.