Zara outpaces H&M in recovery race

Zara looks to be outpacing arch-rival H&M in the race to recovery.

Parent firm Inditex said Wednesday (September 15) that second quarter profit jumped to 850 million euros, or about $1 billion.

That's around four times higher than this time last year, and actually slightly above pre-crisis levels.

Zara sales benefited as lockdowns eased and shoppers stocked up on new clothes for summer socialising.

H&M seems to be travelling a slower road to recovery.

The world's number two fashion retailer, behind Inditex, says sales grew less than expected over the three months to the end of August.

They were up 9%, well below the 14% forecast by analysts.

The Swedish firm says lockdowns continue to hamper any rebound, especially in Asia.

About 100 stores were still temporarily shut at the end of the quarter.

However, H&M says it is making progress, helped by more full-price sales and tight control over costs.

Shares in the firm fell close to 3% in early trades Wednesday.

Inditex was down around 1%.

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