Inditex FY19 sales jump 8% to $28.3 billion

18 Mar '20

2 min read

Pic: Inditex/ Zara

Inditex, a Spanish fashion retailer, posted 8 per cent sales growth to €28.3 billion in fiscal 2019 that ended on January 31, 2020 compared to €26.1 billion prior year. Online sales in FY19 grew 23 per cent to €3.9 billion (14 per cent of net sales). Sales of Zara (Zara and Zara Home) improved to $19.56 billion from $18.02 billion prior year.

Net income in FY19 grew 6 per cent to €3.6 billion compared to €3.4 billion prior year. Gross profit rose 7 per cent to €15.8 billion compared to $14.8 billion in FY18.

Sales of Pull&Bear segment was $1.97 billion (FY18: $1.86 billion). Massimo Dutti sales increased to $1.9 billion (FY18: 1.8 billion). Sales of Bershka was $2.38 billion (FY18: 2.24 billion).

Zara was launched online in Brazil, Egypt, Indonesia, Israel, Lebanon, Morocco, Serbia, South Africa, Kuwait, UAE, Qatar, Saudi Arabia, Bahrein, Jordan, Oman, Colombia, Philippines and Ukraine during fiscal 2019.

Inditex has been very active in store optimisation activities during the year. Gross new space in prime locations grew 5 per cent, as reported. At year end, Inditex operated in 7,469 stores. New store openings have taken place in 43 markets.

The company reported that covid-19 pandemic is having a very significant impact on their business. However, the online business has continued to develop as normal in all markets. Inditex's supply chain continues to operate normally due to the flexibility of the business model. Initial collections for the Spring/Summer season have been very well received by their customers.

Store and online sales of Inditex in local currencies decreased 24.1 per cent from March 1 to March 16, 2020, as reported.

Fibre2Fashion News Desk (JL)

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