Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Zara’s UK operations knocked by £20m pre-tax loss

Zara UK, the UK subsidiary of Spanish fashion giant Inditex, has slumped into the red.

The group, which operates the eponymous chain, Pull and Bear, Massimo Dutti and Bershka in the UK, suffered a pre-tax loss of £20m in the year to January 31, versus a £4.5m profit the year before.

According to documents filed at Companies House, sales rose 16% to £275.1m over the period, primarily due to store openings. Gross margin fell to 51.5%, against 58.3% the previous year – mostly due to currency effects.

The group said it had suffered after heavy investment in expansion and improvements to stores. It opened seven stores over the period, including a flagship at shopping centre Westfield London, and London Oxford Street flagships for Massimo Dutti and young fashion chain Pull and Bear, taking its total UK store count to 63. 

The retailer added: “General retail trading conditions in the UK for 2009 have been difficult and unstable. The clothing sector is enduring a roller-coaster ride due to the combined effects of low consumer confidence and unstable weather.”

Despite this, the company said it had delivered “good” like-for-like sales growth.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.