Global clothing retailer Inditex, the parent company of Zara, saw “a significant rebound in traffic” to its stores worldwide in the first quarter of fiscal 2022 from Feb. 1 through April 30 while online sales dropped. However, the company says it’s still confident it will reach its goal of 30% of its revenue coming from online sales by 2024.
Online sales dropped 6% in the three months of Q1 after a 67% jump in the first quarter of fiscal 2021, while store differentiation helped to boost the foot traffic across Inditex’s stores, according to the company’s latest earnings report Wednesday (June 8).
Overall, Inditex saw its sales jump 36% in fiscal 2022’s first quarter to more than $7.2 billion. Inditex has seven brands, including Zara, selling in 215 markets online or through its 6,477 stores in 95 markets.
The company plans to use increased sustainability and digitalization over the next several years to boost its global sales using what they call a “fully integrated store and online model.” The company is on track to meet its sustainability goals for the next several years and is confident in the growth of online sales.
“The Inditex business model is characterized by a full integration of stores and online providing the latest fashion with the right combination of quality and price to offer a unique customer experience,” according to the company press release.
“The flexibility and responsiveness of the business model in conjunction with in-season proximity sourcing allows a swift reaction to consumer demand with price stability and unique market positioning,” the company says.
Related: Zara Parent Inditex Continues Digital Transition, Expects 30% eCommerce in 2024
Inditex first mentioned the 30% online sales target during its 2021 full-year and fiscal fourth-quarter earnings presentation in March, saying the transition started during the COVID-19 pandemic and shows little sign of reversing at this point.
Inditex has temporarily closed its stores in Russia and Ukraine as the attacks continue in that region.
Marta Ortega, daughter of Inditex founder Amancio Ortega, took over as the company’s chairperson on April 1, replacing Pablo Isla. Óscar García Maceiras recently took over as Inditex’s new chief executive.
Inditex has spent millions on its online presence with Zara and its other brands since the start of the pandemic to try to create more digital market share.
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