Inditex Group reports 11 percent rise in Q1 sales

REPORT_ The Inditex Group sales in local currencies grew by 11 percent in the first quarter of 2014, demonstrating

a strong operating performance. Reported sales affected by currency impact reached 3.7 billion euros (Rs 29,655 crores), up 4 percent year-on-year. Net income amounted to 406 million euros (Rs 3,258.4 crores), compared to 438 million euros (Rs 3,515.3 crores) in the first quarter of 2013.

The Inditex global store network reached 6,393 stores across the group’s 88 operating markets following 53 net openings in 26 different markets during the first quarter. Zara opened new stores in 19 different countries during the quarter, all of which introduced the new store concept. Openings in Seattle (US), Sydney (Australia) and Rome (Italy), were particular highlights, as well as Zara’s flagship opening in Madrid (Spain) on Serrano Street, one of Europe’s most important shopping districts.

Pull & Bear, which opened stores in 12 different markets during the quarter, inaugurated a flagship store in the heart of Milan’s shopping district, on Corso Vittorio Emanuele, in May. In addition, Zara Home has continued its expansion in Japan, where it opened several stores, including its flagship in Tokyo’s elegant Aoyama district. Stradivarius also launched in Japan in the quarter, and will launch its first store in the UK later this year.

In parallel, the group’s various formats continued to update their market propositions; specifically, Massimo Dutti, Bershka and Uterqüe. Massimo Dutti and Uterqüe opened stores in Terminal 4 of Adolfo Suárez-Barajas airport (Madrid, Spain). Meanwhile, Oysho continued its international expansion, introducing its new sports line at sporting events in cities such as Milan, Barcelona and Madrid. As for the group’s online reach, Zara plans to launch its e-commerce platform in South Korea and Mexico in the month of September. In parallel, Zara will widen its offer in China through the launch of an online store in the Tmall e-commerce platform in the 2014 Autumn/Winter season.

The group continued to generate employment, creating over 8,000 new jobs over the past 12 months, 700 of which were in Spain, where it continues to earmark capital expenditure for facility expansion. The new distribution centre in Cabanillas (Guadalajara) is in the process of ramping up operations, while the extended headquarters in Arteixo (Galicia) and the Massimo Dutti logistics platform in Tordera (Catalonia) are fully operational.