Aswat Asharq Al-Awsat :

Aswat Asharq Al-Awsat : Zara Owner Inditex Reports Slowing Quarterly Sales Growth

The Zara clothing store logo is seen at the entrance of a store in Brussels, Belgium November 28, 2022. REUTERS/Yves Herman/File Photo
The Zara clothing store logo is seen at the entrance of a store in Brussels, Belgium November 28, 2022. REUTERS/Yves Herman/File Photo
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Zara Owner Inditex Reports Slowing Quarterly Sales Growth

The Zara clothing store logo is seen at the entrance of a store in Brussels, Belgium November 28, 2022. REUTERS/Yves Herman/File Photo
The Zara clothing store logo is seen at the entrance of a store in Brussels, Belgium November 28, 2022. REUTERS/Yves Herman/File Photo

Zara owner Inditex grew its sales by 7% in the first quarter of its fiscal year, it said on Wednesday, in line with analysts' expectations.
The performance represented a slowdown from a year ago when it benefited from a post-pandemic shopping spree, Reuters reported.
Inditex, which also owns Pull&Bear, Massimo Dutti and other brands, is attempting to fend off intense competition from rivals such as H&M by chasing and delivering fashion trends faster.
The company has outperformed competitors in recent quarters benefiting from investments in
new in-store and online experiences. It is also facing stiff competition from rapidly growing Chinese-owned online retailers Shein and Temu.
The world's largest listed fashion retailer reported 8.15 billion euros ($8.87 billion) in sales during the three months to April. That compared to an average analyst forecast of 8.1 billion euros, according to an LSEG poll.
Net profit rose 11% to 1.29 billion euros ($1.40 billion) in the three months to April, in line with the 1.3 billion euro average forecast by analysts, according to the LSEG poll. In the first quarter of last year, the company reported a 54% rise in profits.
Sales at constant currencies rose 12% from May 1 to June 3, Inditex said.



Aswat Asharq Al-Awsat : LVMH Sales Grow 1% in Second Quarter, Missing Estimates

This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)
This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)
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LVMH Sales Grow 1% in Second Quarter, Missing Estimates

This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)
This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)

LVMH, the world's biggest luxury company, posted a 1% rise in organic sales in the second quarter on Tuesday, missing analyst estimates, and likely adding to investor jitters about slowing growth in the sector.

Sales at the French group, owner of labels Louis Vuitton, Tiffany & Co. and Hennessy, grew to 20.98 billion euros ($22.8 billion), a 1% rise on an organic basis, which strips out currency effects and acquisitions.

The figure fell below analyst expectations for revenues of 21.6 billion euros, according to an LSEG poll based on six analysts.

The report from luxury sector bellwether LVMH, which is Europe's second-largest listed company, worth around 340 billion euros, comes amid concerns about weak sales of designer fashions in the sector's key market, China.

The group's fashion and leather goods division, which includes the Louis Vuitton and Christian Dior brands and accounts for nearly half of group sales and the bulk of operating profit, grew 1%, slowing slightly from the previous quarter's 2% rise.

"While remaining vigilant in the current context, the group approaches the second half of the year with confidence," said LVMH Chairman and Chief Executive Officer Bernard Arnault in a statement.