(RTTNews) – Shares of Industria de Diseño Textil SA (IDEXF.PK) or Inditex were gaining around 7 percent in the morning trade in Spain after the fashion retailer reported Wednesday a profit in its second quarter, compared to a loss in its preceding first quarter that was hit by Covid-19 pandemic.
Inditex Group net profit for the second quarter was 214 million euros, compared to loss of 409 million euros in the first quarter.
The company noted that second-quarter EBITDA topped the one billion mark.
Sales declined 31 percent in the second quarter, compared to 44 percent drop in the first quarter, despite as many as 87 percent of the stores still being closed in May.
As of now, Inditex’s stores are open, with restrictions still in place in some specific markets.
For the first half, net loss was 195 million euros, while adjusted net profit was 39 million euros. First-half consolidated EBITDA was at 1.5 billion euros.
Sales reached 8 billion euros, down 37 percent.
However, growth in online sales remained very high, averaging 74 percent year on year in the first half. One million orders were received in a day for the first time during the second quarter.
Regarding the current trading, the company said the third quarter continues to see a progresive return to normality, with online sales growing sharply and store sales recovering gradually. Store and online sales in local currencies between August 1 and September 6 were down 11 percent against a tough comparable of 8 percent growth during the same period of 2019.
Further, the company expects the digital transformation strategy will drive online sales to more than 25 percent of the total by 2022, compared with 14 percent in 2019.
In Spain, Inditex shares were trading at 25.44 euros, up 6.53 percent.
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