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Profits up at Inditex; will open 480-520 stores this year

22 Mar '12

5 min read

In Europe, growth highlights included Poland (50 new establishments), Russia (49), Romania (21), Turkey (21), Italy (17), Ukraine (14) and the Netherlands (8). As for Europe as a whole, Inditex opened 233 new stores, including the first Bershka and Zara Home locations in Germany, the first Pull&Bear in the Netherlands, the first Oysho in Ukraine and the first Massimo Dutti in Lithuania.

Emblematic locations.
The Group's strategy for siting stores in prime shopping areas, often in well-known buildings, in 2011 materialised in several openings, including new Zara stores on the most coveted shopping streets in Sydney (Pitt Street) and Melbourne (Burke Street) and in the Taipei 101 building in Taiwan's capital. Bershka landed in Japan with a four-storey establishment in the Shibuya district. It also opened in upscale locations in Lausanne (Rue Saint François) and Istanbul (Bagdad Cadesi). Meanwhile, Bershka in downtown Berlin unveiled its most sophisticated eco-efficient store, which aims for a LEED Platinum certification for environmental sustainability.

In addition, Pull&Bear opened a store on Rotterdam's Lijnbaan Street which is fitted with the latest environmentally-friendly features. Pull&Bear also inaugurated establishments in locations ranging from Casablanca's Boulevard Al Massira to Brussels' Rue Neuve and Marseilles' Rue Saint Ferréol.

Meanwhile, Zara Home made its German debut with a large store in Frankfurt's renowned shopping area, Rathenauplatz. Zara Home also opened stores on

George Street (London) and Van Baerlestraat, adjacent Amsterdam's Museumplein. Massimo Dutti chose the same area of the Dutch capital for a launch and opened a store on Moscow's Tverskaya Avenue. Stradivarius built on its presence in Italy with establishments on Milan's Corso Buenos Aires and Turin's Via Roma, while Uterqüe disembarked on Palma de Mallorca's Paseo del Born and on Lippenslaan, in Belgian tourist town Knokke.

Online store launch in China.
Zara will begin offering its fashions online in China during next winter season, extending its e-commerce business to one of the fastest-growing markets for Inditex concepts. The Group continued to develop its Internet sales platforms in 2011, and by September 2011 all of its formats had online stores. By the end of the year, Inditex retailers had e-stores in 18 European countries. Zara's online shop also began welcoming customers in the US and Japan.

Online stores launched after 31-01-2012

Dividend.
The Inditex Board of Directors will submit a proposal to the Annual General Meeting of Shareholders, planned for July, for payment of a dividend of 1.80 euros per share, an increase of 12.5% from a year earlier. This dividend will consist of a 0.90 euro per share interim dividend payable on 2 May 2012 and a 0.90 euro per share final and extraordinary dividend payable on 2 November 2012.

Performance in early 2012.
Store sales in local currencies, adjusted for the calendar effect of an extra trading day in February due to the leap year, have increased by 11% from 1 February to 14 March 2012.

As for full-year 2012, Inditex plans to increase its total number of stores by between 480 and 520 new establishments. Among these, Zara opened last week a 3,500 square metres store in New York City at the corner of Fifth Avenue and 52nd Street which has become a worldwide flagship for the brand.

The Inditex Group

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