Inditex Group sales continued to recover during the first half of 2020 (between 1 February and 31 July) to reach €8 billion, but the decline for the half was -37%.
87% of the group’s stores were closed during the month of May, with business gradually returning to normal since.
Inditex has currently managed to open 98% of its stores around the world, albeit with limits on capacity and restricted opening hours in specific markets.
Online sales grew sharply
Total sales were boosted by very strong online growth, which reached 74% year on year in the first six months of the fiscal year.
Gross margin remained at 56.2% of sales, compared to 56.8% in 1H19.
Net cash generation at €734 million
Inditex generated over €1 billion of EBITDA and increased its net cash position by €734 million during the second quarter.
EBITDA for the first half of the year hit €1.5 billion and net financial position at the end of the first half amounted to €6.5 billion, despite the adverse impact from the Covid-19 pandemic.
Back to profitability in the second quarter
The above factors combined to drive a return to net profit in the second quarter to €214 million leaving behind the 1Q net loss.
First half net loss was €195 million.