Blog: Leonie BarrieInditex inches ahead

Leonie Barrie | 11 June 2008

Signs that consumers across western Europe are tightening their belts were seen today in a slowdown in sales and profit growth at Spanish retail giant Inditex.

Yes its first quarter profits rose 10% to EUR219m and sales were up 9% to EUR2.218bn, but its previously invincible Zara fashion chain was weighed down by a slowdown in the Spanish retail boom, tighter credit conditions and unseasonably cold weather which hurt sales of summer clothing.

The retailer, which also operates the Bershka, Massimo Dutti and Oysho chains, was partly shielded from troubles in its home market – where it generates more than a third of its sales and has almost half its stores – by new store openings overseas.

And it plans to continue its aggressive rollout this year, with between 560 and 640 new stores in 2008 helping to diversify its exposure risk to fluctuating markets.

Closer to home, a recent report suggests there are also growth opportunities in Spain’s still underdeveloped out-of-town sector, the fledgling multi-channel offer and internet retailing.

SPAIN: Inditex maintains guidance as Q1 profit lifts 10%


BLOG

China still dominates apparel sourcing

The latest full-year data on US apparel import trends for 2017 suggests China will remain the dominant sourcing region for some time to come....

BLOG

Retail's rapid transformation requires "platform thinking"

There’s no doubt the retail industry is undergoing rapid transformation as technology continues to reshape how retailers think about their supply chains and meeting their customers’ needs. But to posi...

BLOG

NAFTA trade talks inch forward

Negotiators are meeting this week for the sixth round of NAFTA trade talks – and as soon as this deal has been repackaged, the spotlight could turn to the US free trade agreement with Central America....

BLOG

How can apparel firms stay competitive into the future?

Continuing with the publication of our Outlook 2018 reports last week, we looked at what apparel firms should be doing now if they want to remain competitive into the future....

just-style homepage



Forgot your password?