Expansion across European markets is remarkable – Inditex
The Inditex Group announced first nine month result of fiscal 2010 from February 1 to October 31.
• Inditex registered 300 net store openings in the period, reaching a total of 4,907 stores in 77 countries by October 31
• The most noteworthy store openings were in Asia, a region of top strategic importance for Inditex
• Nine-month net income increased by 42% to 1,179 million euros
• Store sales in local currencies climbed by 10% between August 1 and December 12
Inditex's net sales increased by 14% in the first nine months of its 2010 fiscal year –from February 1 to October 31 – to 8,866 million euros. Nine-month net income rose by 42% from the same period a year earlier to 1,179 million euros. Gross profit climbed by 20% to 5,307 million euros, bringing the gross margin to 59.9%.
Inditex expanded its retail network with 300 new stores in 45 countries in the first nine months. Consequently, as of October 31 the Group reached a total number of stores of 4,907 stores in 77 countries. Inditex reached the 5,000-store milestone on December 9 when it inaugurated the eco-efficient Zara store in Rome's Palazzo Bocconi.
A key highlight of this expansion is the Group's number of store openings in Asian markets. In the period, Zara unveiled eight new stores in Japan, eight in South Korea and 42 stores in China.
In China, the Group debuted stores in cities such as Chengdu, Xian, Shenyang, Dalian, Chongqing, Hohhot, Wuhan and Xiamen, in addition to a landmark store in the Hong Kong airport. The Group now operates in 28 cities across China, with 140 stores of the Zara, Massimo Dutti, Bershka, Stradivarius and Pull&Bear concepts. The Group's remaining commercial formats are scheduled to be launched in China in 2011.
Meanwhile, Inditex has 63 Zara stores in Japan, with Bershka set to arrive in early 2011 with a flagship store in the Shibuya neighbourhood. In South Korea, Zara already has 27 stores, while Massimo Dutti recently opened its first two stores in the country.
The Group's expansion across European markets is also remarkable, with all concepts celebrating significant openings. Highlights include new Zara and Massimo Dutti stores in Saint Petersburg; a 1,400 square metres Bershka on Milan's Vittorio Emanuele; a Stradivarius in Warsaw; Pull&Bear's opening of an eco-efficient store in Madrid; Oysho, another flagship on Paris' Rue de Rivoli; a Zara Home on Piazza San Babila in the heart of Milan's shopping district; and an Uterqüe on Avenue de la Toison d'Or in Brussels.
Furthermore, the third quarter saw the launch of Zara.com, Zara's online store, in six European countries (France, Germany, Italy, Portugal, Spain and the United Kingdom). Since November 4, customers in a total of 11 countries can shop Zara.com after the service went online in Austria, Belgium, Ireland, Luxembourg and the Netherlands. In 2011, Zara.com is scheduled to be launched in the United States and Japan, while the first Zara locations in Australia and South Africa will open their doors.
Store sales in local currencies climbed by 10% between August 1 and December 12.