Spanish fashion group Inditex has witnessed a 10% turnover growth during the first three quarters of its financial year 2011, and 9.5% during the third quarter. Although the group did not release like-for-like figures, it is very likely that most of the growth comes from Inditex's fast expansion, adding over 350 new stores to its existing 5000+ store network.
Major growth in turnover and profit
The retail giant from A Coruña has had an excellent sales record from February to October: turnover rose to €9.71 billion (+10%), EBITDA went up to €2.22 billion (+8%) and net profit reached €1.3 billion (+10%). Despite the difficult circumstances, like rocketing prices for raw materials, Inditex's margin stayed almost stable at 59.6% (down from 59.9%).
The only downside to the third quarter figures was that turnover grew 'only' 9.5%, slightly lower than the 11% in the first and second quarter. The Galician company blames the beautiful autumn in Europe, but says the sales have recovered again in the beginning of the fourth quarter. The holiday season will be hugely important for Inditex, as stocks are growing faster than sales can follow.
Online and offline expansion
Expansion remains paramount for the Spanish group: since February the group has opened 79 new stores in China alone and 358 worldwide. On top of that, Inditex also launched webshops for all its brands. The most remarkable offline achievement was the Rotterdam store of the Pull&Bear chain, a highly ecological design that is – according to the group – a landmark of sustainable and ecological retail.
At the end of October, Inditex had 5,402 stores in 78 countries and 106,251 employees. In the fourth quarter, the group is aiming to open another 142 stores (including a first one in Taiwan, South Africa and Azerbaijan).