Inditex sees slight profit increase | RetailDetail

Inditex sees slight profit increase

Inditex sees slight profit increase

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)

Questions or comments? Please feel free to contact the editors


Multinationals fail their healthy food claims

24/05/2018

Food multinationals are not doing enough to make their products more healthy, according to Access to Nutrition Foundation. NestléUnilever and Danone are top of the class.

Ahold Delhaize launches digital lab in the United States

22/05/2018

Ahold Delhaize’s American division will found a new company focused on digital innovation: Peapod Digital Labs will become a lab for new digital, eCommerce and personalization strategies. 

Carrefour forced to shut down hundreds of Dia stores

22/05/2018

Carrefour has not found a buyer for hundreds of its former Dia stores in France yet. That may force nearly 230 stores to shut down.

Carrefour and Tencent launch high-tech store in Shanghai

22/05/2018

The recently launched ‘Le Marché’ store formula, a first collaboration between Carrefour and Tencent, allows customers to pay with face recognition at unmanned checkouts.

Hoegaarden moves part of production to Vietnam and China

18/05/2018

Hoegaarden experiences strong growth in Asia, but is losing ground in Europe. That is why AB InBev will move part of the production to China and Vietnam: the brewery in Hoegaarden will lower cut its production days by 2 a week.

Holland & Barrett wants vegan stores

17/05/2018

British health chain Holland & Barrett (previously known in the Benelux as Essenza) plans to open completely vegan stores, a trend the chain needs to follow according to CEO Peter Aldis.