Inditex beats forecasts with 5% FY profit rise
- FY net profit up 5% to EUR2.5bn
- Group revenues rise 8% to EUR18.12bn
- Same store sales up 5%
Retail clothing giant Inditex marginally beat market expectations with a 5% boost to full-year net profit, while group revenues were up 8% on last year.
Analyst Bernstein said the figures for the year to 31 January were slightly ahead of its expectations, thanks to “evident” progress at Uterque, which turned a profit for the first time with the closure of unproductive stores.
Bernstein also highlighted the somewhat weaker performances at Zara and Pull & Bear, where sales grew by 7.3% and 7.8% respectively, but said: “We continue to believe that Inditex has the strongest business model in apparel retail, [and] will deliver double digit earnings growth in the medium term.”
Inditex said highlights for the year had included the opening of 343 new stores in 54 markets, bringing the company’s global total to 6,683 outlets.
Online sales had been launched in South Korea and Mexico, meaning that Inditex now has e-commerce operations in 27 countries, with plans to add Taiwan, Hong Kong and Macao to the list in 2015.
Updating on recent performance, Inditex said store sales had risen by 13% at constant currencies between 1 February and 14 March.
The company also announced a new profit sharing scheme for employees over the next two years, open to store, manufacturing, logistics, concepts and subsidiaries employees who have been with the company at least two years.
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