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Zara owner Inditex introduces profit share plan

Zara owner Inditex is to introduce a new profit sharing plan for employees who have been with the group for at least two years.

Eligible employees, expected to be in the region of 70,000 people in 54 markets, will receive 10% of the year-on-year growth consolidated profit attributable to the controlling company up to a cap of 2% of total profit.

The scheme will run for two years, with the first part collected next year based on the year-on-year growth in group net profit in 2015. The second part will be collected in 2017, following the same criteria, and the plan will accrue in 2015 and 2016.

It is not yet known how many UK employees are expected to benefit from the scheme.

It comes as the group reported net sales increased 8% to €18.1bn (£13bn) and gross profit increased 7% to €10.6bn (£7.6bn) for the full year to January 31.

Inditex, which also includes the Massimo Dutti, Bershka, Stradivarius and Uterqüe brands, grew EBITDA by 5% to €4.1bn (£2.9bn) while net profit rose by 5% to €2.5bn (£1.8bn). The group did not provide a breakdown for UK sales and profits.

The group opened 343 new stores during the year, taking its total to 6,683 in 88 markets. The number of employees reached 137,054.

The group continued its sales growth from February 1 to March 14, reporting store sales increased by 13% at constant currency.

Among the notable stores set to open this year is a new Zara 35,000 sq ft store at 61 Oxford Street in London.

@Tara_Hounslea

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