Dan Coatsworth, head of markets at AJ Bell, said: “Everything appears to be going swimmingly for Zara-owner Inditex. A solid set of half-year results was helped by improved gross margins, well-received spring and summer collections, and further geographical expansion.
“It’s impressive that Inditex wasn’t scorched by the summer heatwave in many of its key operating locations. Temperatures have been uncomfortably high which would normally deter people from going to the shops on a frequent basis.
“The group has a reputation for quality and runs a tight ship, enabling it to get products to online customers fast as well as having a decent range in its physical stores. Its key brands including Zara and Pull & Bear remain front of mind for shoppers when they’re looking for something stylish yet affordable.
“The Bershka brand last month made its US debut by dipping its toe into the Miami area, testing the water to see if the retail chain resonates with a young adult and teen target market.
“The US is notoriously difficult for European companies to crack, and Inditex is pushing Bershka at a time when consumers are showing caution with their spending in the States. The group must be confident of winning to have launched the brand in the US in the first place, and it is well versed in geographical expansion across its brand portfolio.”
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