The fiscal fashion machine that is Inditex powered on in Q1. Spain’s eight-brand global retail giant, with Zara at its heart, produced yet another …
The fiscal fashion machine that is Inditex powered on in Q1. Spain’s eight-brand global retail giant, with Zara at its heart, produced yet another set of eye-wateringly good figures Wednesday.
Wait for it… Opening quarter net profits jumped 28% year-on-year to €521m ($589m) with core profit up 22% to €895m.
And… Net sales leapt 17% to €4.37bn, or up 13.5% currency-neutral, compared with a growth rate of 11% in 2014. It also recorded same-store sales growth across its global reach.
OK, sales were bolstered by a weakening euro (the first time in two years Inditex got a boost from its domestic currency) but they still make great reading.
Oh, and it opened 63 stores in 27 markets during the quarter taking its count to 6,746 in 88 markets. Online? Expect to see yet more platforms launched, including Hong Kong, Taiwan and Macao for Zara by September, adding to its e-commerce reach that covers 27 markets.
“We are highly satisfied with the results achieved,” Marcos Lóez, Inditex’s capital markets director blandly told analysts.
Surprisingly, there was no official comment on the quarterly success (although analysts at Bernstein used the headline ‘A Cracking Start to the Year’ in its research notes to clients this morning) and no projections for the fiscal year ahead.
For now, just envy those figures and expect punchy rhetoric at its AGM on July 14.