Inditex, parent company of Zara, reported a sales increase of 13.5 percent and a 40 percent rise in profits in the first six months of 2023, beating expectations. The company’s sales rose to €16.9 billion ($18.1 billion) while profits increased to €2.5 billion ($2.7 billion), it revealed in an earnings report this week. Inditex did not alter its outlook for the rest of the year.
This comes despite the fact that the Spanish retail giant had slowed the pace of its price hikes in recent months, which it first enacted last year to combat rising inflation.
Zara-Owner Inditex Says It Will Stop Buying Clothes From Myanmar
After a military junta took over in 2021, labour rights have eroded in the country; since then, brands have been under pressure to disengage, but their exit could cause economic problems for workers.