Bad weather hits Inditex39;s June sales in Spain
Inditex39;s sales growth likely improved in July analysts
Q2 sales expected to rise 7 LSEG analyst poll
Analysts expect firsthalf profit to rise 10
MADRID, Sept 10 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.
Other clothing retailers have also struggled, with rival HM 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.
But the world39;s biggest listed clothing retailer whose brands include PullBear, Bershka and Massimo Dutti, is not expected to have suffered as much after posting a betterthanexpected 12 rise in sales yearonyear for May 1 to June 3.
Inditex39;s sales for the whole MayJuly 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, hitting several leading fashion and apparel companies. That exacerbated the impact of cashstrapped shoppers becoming more selective about…