• Home
  • News
  • Business
  • Inditex’s Q1 net sales rise 12 percent, profit up 6 percent

Inditex’s Q1 net sales rise 12 percent, profit up 6 percent

By Prachi Singh

loading...

Scroll down to read more

Business |REPORT

The Inditex Group registered net sales growth of 12 percent in the first quarter of 2016 to 4.9 billion euros (5.4 billion dollars), which the company said were driven by a solid business performance and like-for-like sales growth in all geographical markets. In constant-currency terms, revenue growth was 17 percent. Net profit amounted to 554 million euros (621 million dollars), 6 percent more than in the first quarter of 2015.

The Group has generated 11,936 new jobs in the last twelve months, 2,385 of which were in Spain. In April the Group also distributed the 10 percent of the growth in consolidated profit of 2015 among the Group's staff under the scope of its employee profit-sharing plan. Inditex's Chairman, Pablo Isla, said that "thanks to the Group's strong growth we are able to generate jobs in all our business markets, most notably, in Spain".

Inditex records growth across all regions

During the first quarter, Inditex expanded its reach to 90 markets, having opened inaugural stores in Aruba and Nicaragua. Zara, Pull&Bear and Bershka made their début in Nicaragua with stores in Galerías Santo Domingo, one of Managua's shopping centres. In addition, all of the Group's brands continued to expand globally with their fully integrated offline and online store model. At the end of the first-quarter, the Group had 7,085 physical stores, having opened a net 72 stores in 31 markets.

Some of the most noteworthy openings included the Zara store in the heart of New York's SoHo district. In addition, Pull&Bear opened its first store in Luxembourg, on Grand Rue; Zara Home made its début in South Africa and Serbia with new stores in Johannesburg and Belgrade, respectively; Stradivarius opened its first flagship store in Amsterdam, the Netherlands; and Oysho opened its maiden store in Belgium, in the city of Knokke.

Zara and Zara Home also established their presence in Paraguay, while Massimo Dutti inaugurated its first store in India, Stradivarius opened its largest-ever store on London's Oxford Street and Pull&Bear opened a flagship store in Stockholm (Sweden).

With regards to online, all of Inditex's brands expanded their ecommerce platforms in the European Union, having launched their online stores in Bulgaria, Croatia, Slovakia, Slovenia, Estonia, Finland, Hungary, Latvia, Lithuania, Malta and the Czech Republic. As a result, Inditex now has an ecommerce presence in a total of 39 markets worldwide.

Second quarter trading update

Sales in constant currency rose by 15 percent between May 1 and June 13, 2016. At the Inditex’s Annual General Meeting July 19, the Board of Directors will ask the company's shareholders to approve the payment of an overall dividend from 2015 profits of 0.60 euros (0.67 dollars) per share.

The company also announced that Irene Miller will leave the Board of Directors of Inditex once her tenure expires at the AGM. The Board will seek approval at the AGM of the appointment of Baroness Denise Kingsmill to the Board.

picture:zara

Inditex