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Inditex sales and profits up

Zara owner Inditex has posted growing profits and net sales in the first nine months of its financial year.

EBITDA grew by 6% year on year to €3.82bn (£3.37bn) in the nine months to 31 October, while net profit climbed by a similar percentage to €2.34bn (£2.06bn). Gross profit increased by 9% to €10.32bn (£9.09bn).

Net sales jumped by 10% to €17.96bn (£15.82bn). Store count for its portfolio of fascias, which includes Bershka, Massimo Dutti, Pull & Bear and Stradivarius as well as Zara, reached 7,504 across 94 markets. Its brands opened its first stores in Belarus during its third quarter.

The company said it has been rolling out next-day delivery in six markets in the UK, Spain, France, Poland, China and South Korea, as well as same-day delivery in six cities.

It is also installing automated in-store pick-up points for online orders.

Chairman and CEO Pablo Isla highlighted the “increasingly integrated management of the platform, which is translating into value-added customer services”.

 

Readers' comments (1)

  • Great results from a smart company. There seems to be a misnomer in many news reports that Inditex make all garments in Europe with a two week turnaround. Yes, they do make a proportion but they have a large % made elsewhere (they have a thriving Shanghai sourcing office) since machinery and skill base for many items does not lie in Europe. The Europeans also do not sew any faster than (for instance) the Chinese or Vietnamese. Long lead times are usually due to fabric production and shipping distance. Inditex succeeds by trialling and by purchasing or developing fabrics that are trending, up front. Having the foresight to own fabric/components means a huge reduction in lead time from any country of origin. They operate on slightly lower intake margins than many U.K. retailers allowing them to airfreight if required. The right garment at the right time at a reasonable selling price equals better nett margin. Until other retailers have the courage or finance to invest up front in their supply chain, reduce long lead risk and consider lower intake margins, Zara will continue to win in this market.

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