Fashion group Zara’s parent company Inditex fell short of market expectations today as currency effects weighed on the world’s largest clothing retailer.
Shares in the Spanish firm, which is controlled by billionaire tycoon Amancio Ortega, tumbled four per cent in trading after missing estimates for third-quarter profits and sales.
The group, which is highly sensitive to fluctuations in the exchange rate, posted third quarter earnings before interest and taxes (Ebit) of €1.29bn (£1.16bn), which was four per cent less than consensus, according Anne Critchlow of Societe Generale.
Despite the missed estimates, Inditex maintained its sales and margin guidance for the rest of the year, with like-for-like sales in the second half of 2018 to the end of November growing three per on the back of the prolonged warm weather.
The firm, which also brands such as Massimo Dutti and Oysho, also posted gross margin growth of 108 basis points during the third quarter of 2018, saying that it had not had to discount the price of its clothes in recent months unlike some of its rivals.