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


Lidl launches Chinese web shop

22/05/2017

German supermarket chain Lidl has launched its own web shop in China on Alibaba’s online platform Tmall, similar to what many other Western companies have done.

This is Lidl’s battle strategy for the United States

18/05/2017

Mark the date: on 15 June, Lidl will open its first American store. In charge is someone who earned his stripes in Belgium and the Netherlands, but the main question is whether Ahold Delhaize should fear the German discounter’s arrival?

Chicago welcomes first Nutella Cafe

18/05/2017

Before the end of this month, Nutella fans can visit the very first Nutella cafe in Chicago. All types of sweet dishes are sold, most of them based on Ferrero’s chocolate paste.

Nestlé loses another battle in KitKat war

18/05/2017

Swiss chocolate manufacturer Nestlé has been trying to prevent competitors from creating chocolate snacks that look like its own KitKat brand for a decade. It has succeeded in about a dozen countries, but the attempt in the United Kingdom once again failed.

Colruyt to open fourth store in Grand Duchy of Luxembourg

18/05/2017

Providing everything goes according to plan, Colruyt will open its fourth store in the Grand Duchy of Luxembourg in November. Soon, it will open another three, although there is local dissatisfaction.

7-Eleven opens store without staff in South Korea

18/05/2017

American supermarket chain 7-Eleven has opened a South Korean store that operates without staff. Located in Seoul’s Lotte World Tower, the store uses biometric verification when processing payments.

Back to top