SPAIN: City encouraged by Inditex performance
- FY earnings reach EUR2.4bn
- Sales grow 5%
- Margin remains flat
Inditex has invested in refurbishing and expanding its stores
Investment in its store network and the continued roll-out of its online sales platform has paid off for Inditex after it booked an increase in full-year earnings and sales.
Net income in the three months to the end of January reached EUR2.4bn (US$3.3bn), an increase of 1% from a year earlier. Gross margin was down 40bps to 59.3%.
Sales increased by 5% to EUR16.7bn, while like-for-like sales grew by 3%.
The group invested EUR1.2bn over the course of the year in refurbishing and expanding its stores, head offices and logistics platforms. It has also continued the global roll-out of its online sales platform, which now covers most of the Northern Hemisphere.
Zara began online sales in Greece this month and will launch in Romania in April. The brand plans to launch online sales in South Korea and Mexico in autumn/winter, taking the total for Inditex to 27 markets.
Bernstein analyst Jamie Merriman said: "We continue to believe that Inditex has the strongest business model in apparel retail, will deliver double digit earnings growth in the medium term and can hold its multiple."
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