Inditex turnover reaches €6.7bn in 2005, 21% higher than last year
29 Mar '06
3 min read
Spanish fashion retailer behind the Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius and Oysho brands, Inditex SA has reported an increase in net income of 26 percent to €803 million.
La Coruna-based Inditex reached sales of €6,741 million for 2005, an increase of 21 percent over 2004. This rise is due to both the new selling area available - 448 net openings in 2005-and a 5 percent increase in like-for-like sales.
Gross margin reached 56.2 percent, improving 80 basis points compared to the one achieved in 2004, funds from operations rose 21 percent. Generated cash flow enabled the Group to continue its reinvestment policy with CAPEX of €812 million during FY2005.
As a result of the growth from international markets, international stores sales represented 57 percent of total revenues in 2005. European markets (ex-Spain) represented 38.8 percent of revenues.
During 2005 five new markets were entered- Monaco, Costa Rica, Indonesia, the Philippines and Thailand- to which three new ones were added in the first weeks of FY2006: Tunisia, Mainland China and Serbia. This growth also had an impact on the number of employees –58,190 as at the close of the fiscal year- with the creation of 11,144 new net jobs in 2005.
The expansion will continue during 2006 focused in Europe, in addition to which the development of the Asia-Pacific area shall be fostered, given the good results therein achieved and the existing potential of such markets.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
