SPAIN: Inditex “heads pack” after Q1 profit surge
- Q1 net profit up 30% to EUR432m
- Net sales up 15% to EUR3.4bn
- Inditex leads other global fashion retailers – analyst
Zara owner Inditex is outpacing its rivals
Global fashion retail giant Inditex has recorded strong increases to first quarter profit and revenue, placing the Spanish company ahead of other international businesses, according to one analyst.
Meanwhile, the company highlighted a strong start to the second quarter of the fiscal year, with store sales up by 14% in local currencies between 1 February and 10 June.
Inditex said it also planned to launch its online store in mainland China this September, adding to the 16 European countries, plus the US and Japan, which can currently use online retailing.
The company has started work on a 70,000sq m expansion of its headquarters in Arteixo, Spain, and plans to open a new logistics centre for Massimo Dutti in Tordera, Catalonia, this September.
Inditex opened 91 new stores in the first quarter, bringing its total base to 5,618 at 30 April and adding new stores in Ecuador in May, its 85th market.
Simon Chinn, lead consultant at analyst Conlumino, said Inditex’s strong sales had been driven in particular by strong growth in emerging markets, and especially Asia.
“The first quarter performance puts Inditex firmly at the head of the pack of the world’s leading fashion retailers,” he added.
“Over a similar period, H&M’s sales increased by 5%, while Gap’s sales were flat.
“Inditex’s resounding success has come from the development of a diversified portfolio, both in terms of the geographical spread of its operations and the number of concepts it trades from internationally.”
US brands and retailers were baling out of Bangladesh even before the fire at the Tazreen Fashion factory killed more than 110 people at the end of last month. And given the subsequent criticism aimed...
The most read stories on just-style this week include clothing and children's footwear boosting UK retail sales in November, a look at where the Tazreen fire leaves Bangladesh, and Reebok announcing i...
Arcadia owner Sir Philip Green has sold a 25% stake in his Topshop and Topman brands to private equity firm Leonard Green & Partners in a deal that values the two brands at GBP2bn....
Fashion retailer H&M Hennes & Mauritz is set to launch a clothing recycling scheme which will encourage consumers to hand in used garments at H&M stores worldwide to be reused or recycled....
French apparel group PPR has entered into an agreement to sell its US plus size business OneStopPlusGroup to private equity firms Charlesbank Capital and Webster Capital as it works to focus on its lu...
Formal wear retailer The Men's Wearhouse has cut its full-year earnings forecast, amid economic concerns and lower than expected retail clothing sales in November....
Social compliance group Worldwide Responsible Accredited Production (WRAP) is set to run five fire safety training courses in Pakistan in partnership with Accordia Global Compliance Group and several ...
- What the EU-Vietnam trade deal means for duties
- US apparel retailers' January 2016 sales roundup
- Esquel backs Chinese Sea Island cotton production
- US apparel import growth led by Bangladesh
- Ultimate frontier Myanmar uplifts Bogart Lingerie
- Sears looks to lift apparel via sourcing changes
- Eco-friendly garment factory opens in Bangladesh
- Nike accelerates digital strategy with new hire
- Clothing and sports chains in activewear battle
- Bangladesh factory fire renews worker safety fears
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Wearable technology: The future market potential for smart garments and e-textiles
- Global market review of denim and jeanswear – forecasts to 2021
- Wearable Technology Market by Product, Application, Type, & Geography - Global Forecast to 2020
- Practical Price Negotiation