Spanish Inditex, Zara's and Massimo Dutti's parent company, only managed a 1 % profit increase in the past 9 months compared to the same period last year, despite a 7 % turnover growth.
12.7 billion euro turnover
In the first three quarters of its fiscal year, Inditex managed a 1.7 billion euro net profit (+ 1 %) and a 12.7 billion euro turnover (+ 7 %). If exchange rate fluctuations are excluded, its turnover growth was even 10.5 %, according to the group itself.
In the past 9 months, it opened 230 new stores in 50 countries, which leads to a total of 6,570 stores worldwide with more than 70 % in Europe. There were some "firsts" as well: Stradivarius opened its first British store, Massimo Dutti launched its first store in Austria while Pull&Bear entered the market in the Philippines.
The group has also expanded its online reach: it now also has a web shop in South Korea and Mexico, which means it currently reaches 27 different countries. In the 1 November-8 December period, its sales (both online and offline) grew 14 % if exchange rate fluctuations are excluded.
In the past 12 months, Inditex created 8,500 new jobs (1,500 in its home country of Spain), which means that some 133,400 people now work for Inditex.