Inditex, the parent company of Zara and the world's largest fashion retailer, has reported a 12 per cent increase in sales between 1 May and 3 June compared to the same period last year.

A boost in sales from Spring/Summer collections has led to a 5 per cent rise in Inditex's shares, reaching a one-month high in early trading on Thursday.

Despite a slowdown in sales growth for the first quarter ending in April, Inditex still managed a 7 per cent increase. The company's ability to stay ahead of competitors like H&M, Shein, and Temu is attributed to its investments in logistics, technology, and innovative store and online experiences such as livestream shopping.

Chief executive officer Oscar Garcia Maceiras recently announced plans to expand livestream services to markets like the United States and Britain, following successful results in China. Inditex also aims to increase store selling space by approximately 5 per cent annually until 2026.

The company's strategic moves, such as launching Massimo Dutti on JD.com in China and selling products at higher prices in markets like the United States, have contributed to its strong performance. Inditex's shares currently trade at nearly 23 times expected earnings for the next 12 months..

Inditex reported a net profit of €1.29 billion for the first quarter, an 11 per cent increase from the previous year. The company said that it plans to invest €900 million annually through 2025 to expand its logistics capacity, primarily in Europe.

Inditex's strong performance and strategic initiatives highlight the company's ability to adapt to the changing landscape of the fashion industry. By investing in technology, logistics, and innovative shopping experiences, Inditex has positioned itself to capitalise on the growing trend of ecommerce and the increasing demand for fast fashion.

The company's success also underscores the importance of understanding and catering to regional preferences and market dynamics. Inditex's ability to sell products at higher prices in markets like the United States while expanding its presence in China through partnerships with local ecommerce platforms is helping it to maintain its leadership position.

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