September 12, 2018 / 5:25 AM / a year ago

Zara owner Inditex H1 profit up 3 pct on year

MADRID, Sept 12 (Reuters) - Inditex, the world’s biggest clothing retailer and owner of fashion brand Zara, on Wednesday reported a rise in profits for the first six months of its financial year offsetting negative currency effects.

The group also said it expected like-for-like sales growth of 4 to 6 percent over the second half of this year as first half net sales rose 3 percent on a year earlier to 12.03 billion euros ($13.90 billion).

Earnings before interest, tax, depreciation and amortisation (EBITDA) was 2.3 billion euros, in line with consensus forecasts by Reuters, while net profit rose to 1.41 billion euros from 1.37 billion euros, also in line with forecasts.

Sales in local currencies rose by 8 percent in the second half, the company said.

A strong euro has a negative effect on Inditex’s profitability as the owner of Massimo Dutti and Oysho generates more than half of its sales in non-euro currencies and then books those sales in euros when reporting results. ($1 = 0.8631 euros) (Reporting by Paul Day; Editing by Sonya Dowsett)

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