The Zara owner Inditex has reported an increase in demand for spring and summer clothing after a weaker start to the year. In the first five weeks of the second quarter, sales increased by twelve percent on a comparable basis and without currency effects, the clothing company announced on Wednesday in Arteixo.

In the first fiscal quarter, which ended in late April, Inditex had to be content with a slowdown in sales growth, which met analysts' expectations. Revenue increased by 7.1 percent to 8.2 billion euros, and adjusted for currency effects, the increase was 10.6 percent. Earnings before interest and taxes (EBIT) also rose significantly to 1.6 billion euros, and the profit attributable to shareholders was 1.3 billion euros.

The company confirmed its annual forecast but is now expecting slightly stronger headwinds due to currency effects of about two percent.

In addition to Zara, Inditex includes brands such as Bershka, Massimo Dutti, Oysho, and Pull & Bear. The group was able to stand out from the competition after the pandemic and recorded double-digit percentage growth and improved profitability despite weak consumer sentiment and high inflation. However, development slowed since mid-last year, so the insight into the first weeks of the current quarter now gives investors hope.

On Wednesday, the stock gained nearly five percent in early trading. Analysts praised the met expectations in the completed quarter and the unexpectedly strong growth in the current quarter. The results showed that Inditex is achieving significant market gains, wrote Jefferies analyst James Grzinic.