Inditex's profit and turnover up 10% after impressive expansion | RetailDetail

Inditex's profit and turnover up 10% after impressive expansion

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).

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).

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.