Zara Owner Inditex Swung to 1st Half Net Loss Amid Coronavirus Hit
By Mauro Orru
Industria de Diseno Textil SA, the owner of Zara known as
Inditex, said Wednesday that it swung to a net loss for the first
half of its year while sales plunged as it reeled from the impact
of temporary store closures due to coronavirus lockdown
The Spanish fashion giant, which also owns Oysho, Massimo Dutti
and Pull&Bear, reported a net loss of 195 million euros ($231
million) for the six months ended July 31 compared with a net
profit of EUR1.55 billion a year earlier.
The result includes a EUR308 million provision for its
store-optimization program. The company previously said it would
close between 13% and 16% of its total store network as part of a
Inditex posted a first-half loss before interest and taxes of
EUR198 million compared with earnings of EUR2.04 billion, while
earnings before interest, taxes, depreciation, and amortization
dropped to EUR1.49 billion from EUR3.45 billion.
Net sales slipped to EUR8.03 billion from EUR12.82 billion,
although online sales grew 74%.
The company said it is seeing a rapid recovery in operations
heading into the second half.
Write to Mauro Orru at firstname.lastname@example.org; @MauroOrru94
(END) Dow Jones Newswires
September 16, 2020 02:38 ET (06:38 GMT)
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