Spain : Spanish apparel marketer Inditex's Q1FY16 net soars 28%

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Spanish apparel marketer Inditex's Q1FY16 net soars 28%

11
Jun '15

Net profit at Spain based Inditex Group, the biggest global apparel marketer soared 28 per cent year on year in the first fiscal quarter ended April 30, 2015.

In the three months to April 30, 2015, an Inditex Group press release, said its net profit amounted to €521 million, 28 per cent more than in the first quarter of fiscal 2015.

Its first quarter of fiscal 2016 net revenues however moved albeit slower at 17 per cent over the first quarter of fiscal 2015 to reach €4.37 billion, while net sales in constant currencies grew 13 per cent.

“Sales were driven by a solid business performance with LFL sales growth in all geographical areas,” the apparel marketer which has the likes of fast fashion brand Zara in its portfolio said.

The Group added that it has generated 8,580 new jobs in the past twelve months, 1,671 of which are in Spain.

Recently, Inditex approved a profit-sharing plan under which employees will participate in Inditex's earnings growth in 2015-2016.

All employees of its stores, manufacturing, logistics operations, retail chains and subsidiaries around the world who have been employed for more than two years will be eligible to participate.

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

Furthermore, Inditex informed that it continues to invest in the Group's growth and international expansion through capital expenditure.

“The expansion of Zara Home’s distribution hub in Cabanillas, Spain is a particular highlight in the first quarter,” the marketer observed.

These new facilities include the most technologically advanced distribution equipment such as fully automated sorting equipment to dispatch products even more efficiently.

This important technology will also be introduced at other platforms such as the Bershka facility in Tordera.

At the end of the first quarter of fiscal 2016, the Group had 6,746 bricks-and-mortar stores in 88 markets, having opened 63 net new stores in 27 different markets during the period.

At Inditex’s Annual General Meeting scheduled for July 14, 2015, its board of directors will ask shareholders to approve the payment of a total dividend from 2014 profits of €0.52 per share.

Of the total proposed dividend, €0.26 has already paid out on May 4, 2015, while the balance would be paid on November 3, 2015.

The board of directors will also propose the appointment of José Luis Durán to the board for approval at the AGM. He will replace Nils Anderssen, who has announced his decision not to stand for re-election. (AR)

Fibre2fashion News Desk - India

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