Inditex, owner of Zara, earned €11 billion but is losing due to logistics

Inditex has completed the second quarter with profits below expectations, despite a 9% increase in sales in August. The retailer's shares fell by 3% due to rising logistics and operational costs amid the conflict surrounding Iran. From May to July, sales amounted to €11 billion, with gross profitability stopping at 56.7%, failing to meet analysts' forecasts. Inditex's Chief Financial Officer, Andres Sanchez Iglesias, noted that disruptions in the region led to increased transportation costs and a rise in raw material prices. The start of the autumn season showed steady demand: sales of new collections from August 1 to September 7 increased by 9% year-on-year. Revenues from the brands Bershka and Stradivarius exceeded €1 billion each. Inditex is launching its budget brand Lefties in the UK market and plans expansion into Germany. The company is closing secondary locations, focusing on larger flagship stores, reducing its network to 5,444 stores as of the end of July. Inditex will allocate an additional €200 million for office modernization, which is three times higher than H&M's investments.

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