The world's largest fashion retailer Inditex has again pleased the market with impressive results.

The Spanish company reported profit growth of 32% for the first half-year, comfortably above the 26% expected by the market consensus. Net income totalled €944m on 17% sales growth to €7.24bn. Like-for-like sales rose 7% compared to the year-ago period.

Earnings before income tax, depreciation, and amortisation (EBITDA) rose 29% in the first half-year to €1.62bn. Pre-tax earnings (EBIT) rose 35% to €1.24bn. The gross sales margin rose to 59.6% from 58.4%.

Inditex opened 166 new stores in the period for a total of 5,693 stores in 85 markets. On September 5, the company launched online sales in China.

In a conference call following the earnings presentation, company president Pablo Isla declared himself very satisfied by positive results that he attributed to the group's overall execution. He noted that business evolved positively at its 85 markets and that there continues to be global growth opportunities.

Isla asserted that the company is in a strong financial position and pointed out that online sales for the Massimo Dutti and Zara Home brands will be launched in the United States this October.

Technical analysis: On to a new high?

"Inditex shares continue to trade near their all-time high. The stock may be losing strength according to its recent performance but a new leg higher remains very likely," said technical analysts at Digital Look.

"Over the last month, the stock offered some positive signals such as the breakout of resistance at €91.36 on September 6th. This left the stock without resistance. However, it surprised us by turning around on unusually high volume. The move took the stock back to the support level at €85.

"Fortunately, the stock stayed away from that support level and moved above €90.76 again. We would not rule out a move towards €96.50 in the upcoming sessions, the all-time high. The breakout of that level would wipe out any remaining resistance and leave the stock free to take off."

Market reaction

Shares of Inditex have reacted to the earnings presentation with gains. Moments into Wednesday's trading session, Inditex was up 2.89% to €94.60 and approaching an all-time high.

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