Spanish textile giant Inditex, the parent company of fast fashion retailer Zara, takes a hit of US $ 320 million owing to the COVID-19 pandemic.
The fashion retailer’s Spring/summer inventory loses its value as it is under provision!
The company has 7,469 stores across the world, out of which 3,785 stores in 39 markets are temporarily shut down, which has impacted the business significantly.
Here it is important to note that Inditex’s online sales are continuing and functioning normally. It accounted for 14 per cent of total revenue.
The re-opening of shops in China, which is a crucial market for the firm and a producer of its goods, is another ray of hope to repair the losses.
Its net profit up until January 2020 was €3.6 billion, which is a gain of 6 per cent in the current scenario. Deals for the year came in at €28.3 billion, up 8.0 per cent and in accordance with gauge.