What's going on?

Inditex has been taking the �Always Be Closing� tactic a bit too literally: the world�s biggest fashion empire reported lockdown-hampered quarterly sales on Tuesday.

What does this mean?

Inditex�s sales fell 14% last quarter compared to the same time last year, but at least it was a noticeable improvement from the 31% drop the quarter before. Trouble is, there was another wave of lockdowns across Europe in November just as the company inched closer to last year�s sales numbers, forcing almost a quarter of its global stores � under brand names like Zara and Massimo Dutti � to shut.

So when most of those stores were allowed to reopen in December, Inditex refused to rest on its laurels. The company found ways to cut costs and reduce the number of clothes its brands stocked, keeping unwanted items from piling up. That should help keep profits up from here on out.

Why should I care?

For markets: Oh ship.

Rival retailer H&M said it was in a similar boat to Inditex on Tuesday, with sales down 22% between the end of October and the end of November compared to the same time last year. That�s double the drop in sales it saw for the quarter as a whole, suggesting shoppers who had been refreshing their wardrobes went straight back to rocking their trusty sweats all over again in lockdown.

The bigger picture: Change is good.

There was one bright spot in Inditex�s earnings: its online sales grew by 76% in the first nine months of the year versus the same time last year. The retailer�s invested a lot in its digital business, and it can now deliver clothes to almost any country. And according to a recent study by McKinsey, it was right to double down on the transition: the consultancy firm found that more than 65% of the world�s consumers are doing more of their shopping online, and apparently they intend to keep it that way.