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FY14 sales grow 8% at Inditex Group
19
Mar '15
Inditex chairman Pablo Isla announcing FY14 results
Inditex chairman Pablo Isla announcing FY14 results
Spain based Inditex Group, which has notable fashion brands like Zara in its portfolio, said its sales in the twelve months to January 31, 2015, rose 8 per cent year over year.

Sales in fiscal 2014 grew 8 per cent from the previous fiscal to €18.12 billion, while sales in local currencies increased by 11 per cent over fiscal 2013.

“Same-store sales growth was 5 per cent, implying like-for-like store sales growth in the last five years of 23 per cent,” the apparel marketer said in a press release.

In fiscal 2014, EBITDA hiked by 5 per cent from a year ago period to €4.1 billion and net profit totaled to €2.5 billion, again a growth of 5 per cent over fiscal 2013.

In 2014, the Inditex Group created 8,741 new jobs and its headcount went from 128,313 to 137,054, of which, over 1,800 were created in Spain.

In view of the performance of the Group over recent years, a special profit sharing plan has been approved under which employees will participate in Inditex's earnings growth in 2015-2016.

“All employees at stores, manufacturing, logistics, concepts and subsidiaries around the world who have been with the Group for more than two years will be eligible,” the press release added.

The Group will award these beneficiaries 10 per cent of the year-on-year growth in consolidated profit attributable to the controlling company up to a cap of 2 per cent of total profit.

Inditex said the beneficiaries’ number around 70,000 people in 54 markets and the scheme will run for two years.

Part one will be collected in 2016 on the basis of year-on-year growth in net profit in 2015 and part two will be collected in 2017, following the same criteria and the plan will accrue in 2015 and 2016.

Capital expenditure totaled €1.4 billion in 2014 for the automation of processes and modernisation of the Group's facilities in Spain.

Some of the most noteworthy investments include the start-up of Inditex's new logistics platform in Cabanillas in Guadalajara, Spain, generating almost 300 new jobs.

It also completed expansion work at its head office complex with opening of a new Technology Centre, which is equipped with world-class technology and has been certified under the highest IT security.

The bulk of capital expenditure continues to be earmarked to new store openings and the refurbishment and expansion of existing establishments.

In the press release, Inditex noted that it is worth underscoring the one-off investment made to purchase a building in New York's SoHo which will house a new flagship Zara store.

Inditex’s Board of Directors will ask the company’s shareholders to approve a €0.52 per share dividend, marking year-on-year growth of 7.5%, at its Annual General Meeting in July.

A dividend of €0.26 per share will be paid out in the interim on May 4, 2015, and the remaining €0.26 per share would be paid out, if approved, on November 3, 2015 in the form of a final and special dividend.

Inditex ended 2014 with 343 more stores than at year-end 2013 for a total network of 6,683 establishments in 88 markets. (AR)

Fibre2fashion News Desk - India

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