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Shares in Zara-owner Inditex fall as company announces slowdown

Shares in Zara-owner Inditex fall as company announces slowdown
/ Reuters
  • The company, which owns Zara, Bershka and Massimo Dutti, among other brands, made 2.4 billion euros profit to October, up four per cent on a year earlier

Sales in Spanish clothing giant, Inditex, fell on Tuesday by almost five per cent on the day it announced a slowdown in growth in the nine months from February to October. Inditex, which owns Zara, Bershka and Massimo Dutti, among other brands, made 2.4 billion euros profit to October, up four per cent on a year earlier. Sustained by a sales increase of three per cent, nevertheless, it upset some analysts. Last year it grew six per cent in the same period.

"The current situation at the company is clearly disappointing," said Sergio Ávila Luengo of IG Markets.

The results were hit by an "extraordinarily warm September", said the group, which added that its strategy not to enter a discounting war with the competition at that time had paid off. Total sales in the nine-month period were18.4 billion euros coming from its 7,442 shops and internet.

The Galicia-based company added that the winter season had started well and that in November it had launched a new web platform for Zara in 106 new markets, especially Africa, in keeping with its strategy to have an internet presence in every country by 2020.