June 3 (Reuters) – Zara owner Inditex reported a strong start to summer trading on Wednesday, with currency-adjusted sales growth of 11.5% in May, well above analysts’ expectations, and said its sales grew 8.8% in currency-adjusted terms over its first quarter running from February to April.
The stronger-than-expected sales growth for the start of its second quarter should help reassure investors that the fast fashion giant, whose shares have fallen since the start of the year, can keep attracting shoppers despite the Iran war-driven energy crisis pushing up the cost of living.
Inditex posted sales of €8.75 billion ($10.17 billion) over the quarter, and profitability improved too with the gross margin hitting 61.2% – up from 60.6% a year ago – in a sign the retailer has been able to protect profits despite higher raw material and freight costs.
Analysts had expected sales growth of 8% for May.
($1 = 0.8605 euros)
(Reporting by Helen Reid; Editing by David Latona)
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