Inditex, the Spanish clothing company, announced that it swung to a 1Q net loss of 409 million euros from a net profit of 734 million euros in the prior-year period and EBIT loss amounted to 508 million euros, compared with an EBIT of 980 million euros previously.
Also, net sales were down 44.3% on year to 3.30 billion euros. In addition, the company said: "Sales trends began to improve in May, though they are not yet at normal levels.
As of 8 June, 5,743 stores (78% of total) were open in 79 markets. Store & Online sales in local currencies in May decreased 51%. Store & Online sales in local currency from 2 June to 8 June decreased 34%."
From a technical perspective, the bullish momentum is fading as a rising wedge pattern (reversal pattern) is taking shape (not yet validated). The 20-week simple moving average is still heading downward.
Neutral view between 24.5E and 27.2E. A break below 24.5E would deliver a bearish signal (validation of the rising wedge) and would call for a drop toward 21.5E and 18.5E. Alternatively, a push above 27.2E would call for a new up leg towards 30E.
Source: GAIN Capital, TradingView
