Zara owner Inditex disappoints on profit margin despite strong sales
By Sonya Dowsett
MADRID- The world's biggest fashion retailer, Inditex, on Wednesday reported weaker-than-expected growth in profit margins in the first half of the year, knocking its shares lower.
The disappointing margin growth overshadowed strong growth in sales in the first half, buoyed by good summer weather in Europe. Shares of the company, which had risen 28% year-to-date, were trading 1.6% lower at 0747 GMT.
First-half gross margin, a measure of profitability, was up 12 basis points, prompting some analysts to estimate margins actually fell in the second quarter.