Apparel retailer Inditex Q1'FY14 net sales rise 11%

28 Jun '14

4 min read

Inditex announces results for first quarter for fiscal 2015.

Highlights:

-Net sales amounted a total of €3.7 billion and net profit was €406 million

-In the past 12 months the Group has created over 8,000 new jobs, 700 of which were in Spain

-The Group opened new stores in 26 different markets during the first quarter, bringing its worldwide network to 6,393 stores in 88 markets

-During Autumn/Winter season, Zara will roll out its online platform in South Korea and Mexico and will also enter the Tmall e-commerce platform in China

-The Board of Directors will propose a 5-for-1 stock split at the upcoming Annual General Meeting

Store sales in local currencies increased by 11% between 1 February and 8 June 2014

The Inditex Group sales in local currencies grew by 11% in the first quarter of 2014 (1 February to 30 April), demonstrating a strong operating performance. Reported sales affected by currency impact reached €3.7 billion, up 4% year-on-year. Net income amounted to €406 million, compared to €438 million in the first quarter of 2013.

The Group continued to generate employment, creating over 8,000 new jobs over the past 12 months, 700 of which were in Spain, where it continues to earmark capital expenditure for facility expansion.

The new distribution centre in Cabanillas (Guadalajara) is in the process of ramping up operations, while the extended headquarters in Arteixo (Galicia) and the Massimo Dutti logistics platform in Tordera (Catalonia) are fully operational.

All of Inditex's brands continue to expand internationally. The global store network reached 6,393 stores across the Group's 88 operating markets following 53 net openings in 26 different markets during the first quarter. Zara opened new stores in 19 different countries during the quarter, all of which introduced the new store concept. Openings in Seattle (US), Sydney (Australia) and Rome (Italy), were particular highlights, as well as Zara's flagship opening in Madrid (Spain) on Serrano Street, one of Europe's most important shopping districts.

Pull&Bear, which opened stores in 12 different markets during the quarter, inaugurated a flagship store in the heart of Milan's shopping district, on Corso Vittorio Emanuele, in May. In addition, Zara Home has continued its expansion in Japan, where it opened several stores, including its flagship in Tokyo's elegant Aoyama district. Stradivarius also launched in Japan in the quarter, and will launch its first store in the UK later this year.

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