Susannah Streeter, chief investment strategist at Wealth Club, was left impressed by Zara’s latest trading update, with first-half profits increasing.
She said: “Fashion lovers seem to have shrugged off worries about conflict and climate change and spent big on wardrobe refreshes.
“Zara owner Inditex has reported a record €19.8 billion in first-half sales, up 7.6 per cent, with profits rising 6.8 per cent to just under €3 billion, while sales in August and early September jumped nine per cent.
“It’s a pretty strong fashion statement and a badge of honour for Zara’s design and merchandising teams who are on the money when it comes to creating the looks to make shoppers part with their cash, even when household budgets are under pressure.
“There’s still appetite for retail therapy, particularly if the price is right, with Bershka and Stradivarius delivering double-digit sales growth.
“These brands are at the slightly cheaper end of Zara’s wardrobe of fashion names and seem to be touching the sweet spot when it comes for a desire for style updates, while keeping an eye on tighter budgets.
“This is also showing up in other sales data too, with Sportwear brand Oysho, from Inditex, seeing sales grow by more than 20 per cent, capitalising on the desire to get fit and the growing gym scene.”
Contact details are available to account holders.
Create a free account to get in touch with this expert.