SPAIN: Inditex FY profit surges 22% to EUR2.3bn
- FY net profit up 22% to EUR2.3bn
- Net sales rise 16% to EUR15.9bn
- Like-for-like sales up 6%
Like-for-like sales were up 6% in the year to 31 January, and Inditex broke through the 6,000 store barrier by opening 482 new outlets in 64 markets, including new entries to Armenia, Bosnia-Herzegovina, Ecuador, Georgia and the Former Yugoslav Republic of Macedonia.
Inditex highlighted its opening of 75 new stores in Russia, as well as strong growth in Poland (38 new stores for a total of 205), Romania (16 and 88 respectively), France (14 and 259), Germany (13 and 91), Turkey (11 and 146) and the Netherlands (7 and 42).
Updating on recent performance, Inditex said store sales in local currencies were up 12% in the period from 1 February to 11 March.
The company said it planned to open 440-480 new stores in 2013.
Joseph Robinson, lead consultant at retail analyst Conlumino, says Inditex continues to benefit from a focus on diversifying its store portfolio away from difficult European markets, along with its industry-leading model and low debt base.
But he notes: "With the global economic outlook remaining poor, Inditex faces a significant challenge to deliver such a stellar performance in 2013.
"The main danger for Inditex remains in expanding too quickly in what remains a turbulent global economy.
"However, the group has displayed a strong flexibility in its approach to different markets and has shown an ability to react it changing environments. In the UK for example, the group - primarily through its flagship Zara fascia - has been ideally positioned to capitalise on a consumer trend of consumers looking to purchase fewer, higher quality items."
He also points out the retailer is well placed to benefit from a strong pipeline of new store openings, "with a particular focus on better performing emerging economies, where it has less of a presence.
"Elsewhere, its late entry into the online arena, at a time when many of its key competitor's offers are beginning to mature, is providing another strong avenue for growth."
More than 170 companies have now signed the Accord on Fire and Building Safety in Bangladesh following the collapse of the Rana Plaza factory building in Dhaka, which killed more than 1,100 people las...
ZARA Ukraina TOV entered Ukraine in 2008 and quickly reached fourth position in the top players in apparel despite the recession. Ukrainians lacked brands positioned in the “democratic” branded appare...
Inditex was founded in 1963 by Amancio Ortega Gaona. The group opened its first Zara shop in 1975 in A Coruna, Spain. Inditex was established as the head of the corporate group in 1985. The group witn...
Mexico is Inditex’s third largest sales territory on a global basis, behind only Spain and Portugal. All of the company’s brands (Zara, Bershka, Oysho, Massimo Dutti, Pull & Bear, Uterqüe, Stradivariu...
As part of efforts to speed implementation of its scheme to improve safety in the country's ready-made garment industry, the Accord on Fire and Building Safety in Bangladesh has hired an interim execu...
Inditex, Industria de Diseño Textil SA is present in Colombia with its Zara, Bershka, Massimo Dutti and Stradivarius brands. The company plans to continue expanding into major and medium-sized cities....
- INTERVIEW: Crystal CEO rises to the challenges
- Li & Fung: China consumption to bring major change
- Pacific Crystal Textiles gears up for production
- Innovation and e-commerce key to Nike's growth
- Growth in smart garments and wearable technology
- China apparel interns in forced labour conditions
- Adidas taps Nike designers for new creative studio
- Addressing anaemia key to Cambodia productivity
- Chinese firm to invest in Ethiopian textile plant
- Activists slam dismissals at Sri Lanka shoe firm