Fashion brand Zara owner Inditex has outpaced its Swedish rival H&M in its efforts to bounce back from the coronavirus crisis, with second-quarter sales rising above pre-pandemic levels. Its sales edged above levels seen before the pandemic as most stores reopened and people rushed to renew their wardrobe after store closures imposed to curb by the spread of the virus.
Rival H&M sales grew less than expected from a year ago in the three months through August and remained lodged below pre-pandemic levels. The firm stated that lockdowns and restrictions hampered its development, particularly in Asia.
Inditex Executive Chairman Pablo Isla stated that the sales in stores and online were progressively recovering across all brands and markets, despite some restrictions in Asia due to the pandemic. He also added, “We have had a strong start in the autumn winter season. Inditex competitive differentiation is bigger than ever.”
Analysts declared that consumers have shifted their spending recently to focus on fashion workwear as big cities slowly return to normality and most lockdowns are lifted, a trend which is benefitting the Inditex brand, which include Zara and Massimo Dutti.