Inditex SA reported its highest profitability in a decade as the Zara owner offset inflation through tight cost control and kept attracting shoppers even with higher prices.
Operating income rose 82% in the three months through April, exceeding pre-pandemic levels, the company said Wednesday. The gross margin reached a 10-year record. The stock rose as much as 4.8%.
Inditex is dealing with garment-price inflation better than rivals, helped by its focus on buying more clothes from nearby suppliers in Spain, Morocco and Turkey and less from far-off markets in Asia. Zara also has more pricing power than mass-market rivals because its offerings often imitate the latest high-end fashions.