Growth continues for fast-fashion superstars
For all the talk of reducing consumption and moving away from the ‘fast-fashion’ way of making and buying clothes, the companies most synonymous with the term continue to increase their revenues.
Inditex, the parent group of Zara, has reported revenues of €14.8 billion for the first half of 2022, an increase of 25% year on year.
Rival group H&M has reported provisional revenues for third quarter of a little under €5.4 billion. If confirmed, this would give it revenues of €15 billion for the first nine months of its current financial year, which runs from December 2021 to November 2022. This would represent growth of around 13% year on year.
Commenting on its results, Inditex said pre-tax profits for the six months it has reported so far were €8.6 billion, a margin of 57.9% of sales, which it said is the highest level it has achieved in seven years.
Fast fashion is too profitable to be likely to go away any time soon.
