Main points
- Inditex reported a 9% rise in revenue in the five weeks to March 8, despite supply disruptions due to the war in Iran.
- Inditex shares rose 5.2% amid market turmoil, despite garment shipments being delayed at airports in Bangladesh and India.
Zara owner reports revenue growth / Unsplash
One of Spain's largest fashion groups, Inditex, said that revenue in constant currency rose 9% in the five weeks to March 8, despite some clothing shipments being disrupted by the war in Iran.
How has Zara's revenue grown?
Inditex recorded steady sales growth in the first weeks of the current fiscal year, highlighting the retailer's resilience in the face of weakening consumer sentiment, writes Bloomberg.
The year started strongly despite the uncertain impact of the turmoil in the Middle East, even if it is unclear whether investors were hoping for a figure closer to 10%,
– Jefferies analysts, including James Grzynik, wrote in a note.
Inditex shares rose as much as 5.2% in early trading in Madrid, their biggest jump this year. But the shares, which rose to a record high in February, have fallen sharply in the past two weeks amid broader market turmoil linked to the Iran war.
Interesting! Inditex owns the brands Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and others, with thousands of stores around the world.
The war in Iran has blocked the supply of clothes to Zara and Bershka stores in Europe: what is known?
A few days ago, it became known that shipments of clothing from the Spanish company Inditex were stuck at airports in Bangladesh and India, Reuters writes.
This is due to the war in the Middle East, which has forced airlines such as Emirates and Qatar Airways to cancel flights. South Asia is one of the world's most important clothing manufacturing hubs, and fast fashion brands depend on factories in Bangladesh, India and Pakistan for a steady flow of T-shirts, dresses and jeans.
Some of my shipments of clothes are currently stuck at Dhaka Airport (Bangladesh),
– said Shovon Islam, Managing Director of Sparrow Group.
The company's European clients include Inditex, Marks & Spencer, Next plc and Primark. The products were due to be delivered to the UK via Dubai, but Dubai airport has been suspended, causing serious difficulties for exporters.
Latest news about the conflict between the US and Iran
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Iran threatens to continue attacks on oil tankers, causing oil prices to rise. The IRGC also promises to attack economic centers and offices of companies linked to the US and Israel.
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US President Donald Trump has said that the war with Iran could end “soon” because there is “virtually nothing to aim at.” Israeli officials say that attacks on Iran are planned for at least another 2 weeks.
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Russia provides Iran with tactical support in using drones to attack the US and the Gulf states, sharing experience gained in the war against Ukraine. Iran uses the Shahed to penetrate the air defenses of the Gulf states.
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Ukraine could help the US shoot down Iranian Shaheds in the Middle East, which would demonstrate a willingness to cooperate. Ukraine already has a joint production of interceptor drones with the UK and has sent experts to the Middle East to help the Gulf states.