Inditex sees turnover and profit rise

Inditex sees turnover and profit rise

Spanish fashion label Inditex saw its like-for-like turnover rise 2% to 7.66 billion euro in the first semester of 2013, while its profits also rose.

Increased turnover thanks to new stores

In the first six months of 2013, Inditex increased its total sales 5.7% compared to the same period last year: the weak spring period, because of the bad weather in Western Europe, did not affect the sales too much. Taking local currencies into account, the increase is even more impressive, reaching 8%.

 

Expanding the number of stores partly contributed greatly to the increase:Inditex opened 95 new stores in the past six months, reaching 6,104 stores in 86 different markets. Additionally, good results in upcoming markets like China also helped Inditex, compensating the weaker results in its home market Spain.

 

Profits survive increasingly expensive resources

The first half of 2013 resulted in a net profit of 951 million euro: the0.7% increase outgrew all analysts’ expectations, as 2012 was already a record year. However, Inditex’ gross margin dropped from 59.6% to 58.6%, partly because of rising resource costs.

 

Analystsexpect a good second half of 2013, thanks to a better summer and an increased consumer confidence – even in Spain. A strong euro could slow down possible results though.

 

Inditex also keeps on opening new stores, both online and offline. Its online operation has now expanded to 22 countries, with Zara opening a Russian web shop in August and Massimo Duti and Zara Home launching websites in Canada.

Questions or comments? Please feel free to contact the editors


Online FMCG sales continue to soar

22/11/2017

According to a new Kantar Worldpanel report, online grocery sales grew 30 %, in stark contrast with the overall 1.3 % increase. Online sales now contribute 4.6 % to the overall FMCG sales, but that will grow to 10 % (145 billion euro) by 2025.

Nestlé considers Hain Celestial acquisition

22/11/2017

Nestlé is allegedly interested in a Hain Celestial acquisition. The food company manufactures organic and vegetarian food and is currently valued at about 3.5 billion euro.

Scotland is first to enforce minimum alcohol price

21/11/2017

Scotland is the first in the world to finally enforce a minimum price for alcohol. The law as approved in 2012, but whisky distillers managed to block the legislation up until now.

Europe approves organic reform, Belgium abstains

21/11/2017

The European Commission approved new legislation to simplify organic agriculture in Europe. It will be enacted in July 2020. There was no agreement among Belgian politicians, which is why Belgium abstained.

Greenpeace creates critical parody of Coca-Cola's Christmas commercial

20/11/2017

Many people consider Coca-Cola’s Christmas ad to signal the start of the holiday season. However, this time around, Greenpeace created a parody to highlight the pollution at the hands of the soda manufacturer.

Alibaba invests 2.5 billion euro in Auchan subsidiary

20/11/2017

Chinese eCommerce giant Alibaba acquired a 36 % stake in supermarket firm Sun Art Retail Group, China’s second largest supermarket chain with 450 supermarkets. French retailer Auchan is the group’s largest shareholder.

Back to top