MADRID (Reuters) – Expectations of bumper second quarter sales growth at Zara owner Inditex have been dashed by a wet and cold June in its biggest market of Spain, analysts and investors said ahead of earnings due on Wednesday. Inditex sales forecasts have been significantly affected by recent weather patterns. #InditexSalesForecasts
Other clothing retailers have also struggled, with rival H&M predicting a 6% fall in June sales, partly due to poor weather in several of its biggest markets. Meanwhile, wet weather in Britain hit summer sales at Primark.
The world’s biggest listed clothing retailer, including Pull&Bear, Bershka, and Massimo Dutti, posted a better-than-expected 12% sales rise. This strong performance is for the period from May 1 to June 3. Consequently, the retailer is not expected to have suffered as much from recent challenges.
Inditex’s sales for the whole May-July quarter, however, are expected to have risen by 7%, an analyst poll by LSEG showed. Sales in the first quarter ending in April rose by 7%.
“Inditex should continue outperforming but I assume a slowdown within the quarter due to adverse weather conditions,” said Bestinver Securities analyst Patricia Cifuentes, who expects quarterly sales to rise by 9%.
Poor spring and summer weather across Europe kept many shoppers at home. This situation hurt several leading fashion and apparel companies. Additionally, cash-strapped shoppers became more selective about their spending, worsening the impact. #InditexSalesForecasts
In Spain, which accounts for 14.8% of Inditex’s sales, June rainfall was 49% above average, the state weather agency said.
Moreover, the persistent rain has impacted foot traffic and overall consumer spending. As a result, Inditex sales forecasts now reflect a more cautious outlook. This shift highlights the sensitivity of retail performance to weather conditions.
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