Even as shoppers stock up on new clothes to return to the office and to bars, quick fashion stocks have been left on the shelves. It might show nerves about further closures, but another explanation is possible: Investors might start paying more attention to the garment industry’s environmental footprint.
Zara owner Inditex said on Wednesday that sales for the quarter through July were up 51% at constant currencies from the same period last year, and even 7% from the quarter. 2019. The company is in better shape than before the crisis on other measures as well. Inventory levels are lower than in 2019, net cash is over 8 billion euros, or $ 9.5 billion. E-commerce is expected to account for 25% of total sales this fiscal year, up from 14% before the pandemic, and the company has reduced its total number of stores by 9% in the past 12 months.