Zara’s parent and H&M witness strong sales recovery from pandemic woes
Category: #business  By Mateen Dalal  Date: 2021-12-16
  • share
  • Twitter
  • Facebook
  • LinkedIn

Zara’s parent and H&M witness strong sales recovery from pandemic woes

Zara’s owner Inditex along with H&M have reportedly recorded a surge in sales volumes that reached pre-pandemic levels, as the two leading fashion retailers witnessed rapid demand recovery despite challenges in global supply chains.

Inditex, which is the largest fashion retailer in the world, stated that sales on a constant currency basis were up by 10% as compared to 2019 levels in the quarter ended October. This trend has continued till December 10, propelled by strong online demand.

Meanwhile, Sweden’s Hennes and Mauritz (H&M) revealed that its sales in local currency were at par with pre-pandemic levels during its September to November quarter.

Share prices in both H&M and Inditex dropped by 3% in early trading, as the emergence of the new Omicron COVID-19 variant dampened the spirits of Christmas trading.

According to market analysts, the major short-term risk for Inditex will be the possibility of further restrictions on travel flows and store operations due to the Omicron variant, especially in the southern part of Europe.

Notably, tourism is an important aspect for Inditex, as it generates about 15% of its sales from stores located at major city centers which are known to rely heavily on tourists.

Inditex said that its online sales for the first nine months of the year shot up by 124% as compared to the same period in 2019 and that it estimated them to account for over one-fourth of the total sales volumes during the year.

In the meantime, H&M reported net sales of USD 6.22 billion in the September-November quarter and said that customers have been showing a high affinity for online shopping as they can shop when, where, and how they choose.

It is worth noting that companies have been struggling to source raw materials amidst a strong global economic recovery as the pandemic continues to affect everyday life in several parts of the world.

Source Credits –

https://money.usnews.com/investing/news/articles/2021-12-15/inditex-9-month-net-profit-more-than-triples-to-2-5-billion-euros

About Author

Mateen Dalal    

Mateen Dalal

Despite working as a professional testing engineer, Mateen Dalal always held a liking for content creation. Following his passion, he now pens down articles for itresearchbrief.com and a couple of similar portals. Mateen is a qualified electronics and telecommunicat...

Read More>>

More News By Mateen Dalal

Monkeypox virus found to be mutating faster than expected: Report
Monkeypox virus found to be mutating faster than expected: Report
By Mateen Dalal

Researchers studying the genetic nature of the monkeypox have recently claimed that the virus has be...

Bristol Myers Squibb to face USD 6.4 billion lawsuit over delayed drug
Bristol Myers Squibb to face USD 6.4 billion lawsuit over delayed drug
By Mateen Dalal

A U.S. judge has reportedly refused to toss out a USD 6.4 billion lawsuit that claimed pharma giant ...

Russia eyeing newer markets to sell fuel as Europe looks to halt supply
Russia eyeing newer markets to sell fuel as Europe looks to halt supply
By Mateen Dalal

While Asia is already importing large volumes of Russian crude oil, sources with relevant informatio...