Spanish fashion company Inditex, which owns brands like Zara, experienced a 10 % turnover and net profit increase in the past fiscal year.
280 new stores
For 2016, Inditex’ total turnover reached 23.3 billion euro, up 12 % compared to the year before. Its like-for-like turnover also grew 10 %, which clearly shows that Inditex mainly generates growth in stores that have been around for more than 12 months. Thanks to an additional 279 stores in 56 countries last year (including entries in New Zealand, Vietnam, Paraguay, Aruba and Nicaragua), Inditex currently has 7,292 stores in 93 countries. Its online presence is not as robust, but still encompasses 43 countries.
These excellent results have resulted in a second profit bonus for 84,000 of its 162,450 employees, a plan the company will continue in another form for the next two years.
Invest
Its gross operating profit jumped from 4.7 to 5.1 billion euro and its net profit grew 10 % to 3.2 billion euro. Inditex will continue its investments, despite these positive results: in 2016, investments reached 1.4 billion euro, mainly in logistics, technology, store network and online growth. Its investments for 2017 will grow slightly, to 1.5 billion euro.
“These are a positive set of results against a backdrop of strong prior-year performance. This is a direct result of the commitment, spirit and ambition of all the professionals comprising the Group, their dedication to the company, passion for fashion and focus on sustainability”, CEO Pablo Isla said.
