By Corina Pons and Helen Reid
MADRID (Reuters) -Zara proprietor Inditex (BME:) posted a uncommon miss on quarterly gross sales and revenue on Wednesday, though the world’s largest listed fast-fashion retailer mentioned the vacation buying season had bought off to a great begin.
Shares in Inditex, which have risen about 30% this yr, fell 6% in early buying and selling as buyers digested outcomes hit by forex fluctuations and extreme floods in Spain, Inditex’s largest market.
Third-quarter gross sales of 9.36 billion euros ($9.84 billion) got here in beneath the 9.51 billion anticipated by analysts. An 8.5% rise in nine-month web revenue to 4.44 billion euros additionally lagged the 4.52 billion anticipated by analysts.
Extreme floods on the finish of October in Spain had a “very limited” influence on the corporate’s efficiency, capital markets director Marcos Lopez instructed analysts on a name.
A robust greenback and weak euro additionally damage the outcome, analysts mentioned, as Inditex makes most of its gross sales in euros.
“Despite the quarterly setback, affected by the weather and the exchange rate, I believe the company continues on its growth trajectory,” mentioned Xavier Brun, portfolio supervisor at Madrid-based Trea Asset Administration, which holds Inditex shares.
Zara has been investing in bigger shops, logistics centres and advertising, launching a set with supermodel Kate Moss, because it tries to take care of its edge over fast-fashion rivals like H&M (ST:) and Shein, which promote at decrease costs.
Inditex reported a great begin to the vacation season, although, with revenues up 9% in currency-adjusted phrases within the six weeks to Dec. 9, which incorporates key Black Friday gross sales. Nonetheless, that was slower than the 14% gross sales development reported a yr in the past.
“We had a strong start to the last quarter against a demanding comparable in the same period of 2023,” Lopez instructed Reuters.
He pointed to currency-adjusted gross sales development of 10.5% within the first 9 months of the fiscal yr.
($1 = 0.9500 euros)
($1 = 0.9517 euros)