Inditex Group announced a new first quarter record revenue of €5.7 billion, driven by flagship brand Zara.
This marks a 2 per cent increase in net sales growth, up from €5.6 billion in the first quarter of 2017, which was underpinned by solid business performance and same-store sales growth across all geographies.
Gross margin rose to 58.9 per cent, a 3 per cent increase year over year.
Inditex’s chairman and CEO, Pablo Isla, noted that “the strength of the integrated store and online model, bolstered by continued innovation, is driving solid growth and notable job creation.”
During this period, the Group continued to push its ‘integrated store model’, with many stores receiving refurbishments and expansions to bring them up to date, while launching online sales in Australia and New Zealand.
Zara launched its first stores in Buffalo, New York and Murray, Utah in the United States, as well as in Pune, India, while bringing its augmented reality technology, ZaraAR, to 130 flagships globally.
ZaraAR allows customers to use their phones to view AR models wearing Zara outfits either by holding the app up to a sensor within stores, or over online delivery packaging, offering a chance to easily preview what the clothes look like in motion.
As a part of its Employee Profitsharing Plan, Inditex distributed €42 million among 88000 employees.
The plan rewards employees with at least two years service in its stores, manufacturing facilities, logistics platforms, brands and subsidiaries, and commits to pay out 10 per cent of the annual growth in new profit.
Competitor H&M Group will publish its six-month report for 2018 on 28 June.
This story first appeared on sister site Inside Retail Australia.