Spanish fashion group Inditex has seen its net profit increase 0.6 percent in the nine months leading up to 31 October, lifting it to 1.67 billion euro. Next year, the group intends to open another 500 new stores.
Increased turnover growth
The growth in net profit was in line with what analysts had expected. Turnover increased 5 % to 11.93 billion euro (eliminating exchange course effects even 8 %), but from 1 November until 8 December, turnover (without exchange rate fluctuations) even reached 10 % - proof of the company’s growth speeding up, albeit slower than expected.
Inditex had 6,249 stores on 31 October, compared to 5,887 in 2012 and even doubling the tally compared to 2007. It intends to increase the number with an additional 500 stores next year, mostly in China - which already is Inditex’ second largest market with 450 stores. “We continue to see China as a very relevant driver of our expansion in coming years”, CEO Pablo Isla confirmed.
He also mentioned that the company has seen growth in Spain in the second part of the year, which is positive news considering the recession severely meddled with Spanish consumption and therefore Inditex’ numbers.
(Translated by Gary Peeters)