Spain based leading fashion company Inditex announced its first quarter results.
* Net sales totalled €1,406 million, a 19% increase over the same period of FY2004 and gross margin increased by 23%
* The Board of Directors agreed to appoint Mr. Pablo Isla as Chief Executive Officer and to exercise the option to acquire the 9.95% of Stradivarius, reaching 100%
* Inditex has opened 90 new stores in the first quarter and foresees between 335 and 395 openings throughout FY2005
Inditex net sales rose to €1,406 million in the first quarter of FY2005. This figure is 19% higher than in the same period last year, as a result of the increase in the selling area of the Group and comparable store sales. Growth in sales in constant currency would have reached 20%.
Net income in the first quarter (from 1 February to 30 April) reached €125 million, up 21% compared with 1Q04. EBIT and EBITDA increased by 16% and 18% respectively. Gross margin on sales reached 55.7% in the first quarter, a 180 basis points improvement.
Operating expenses have grown accordingly to the Group budget, as a result of higher number of international openings. In 1Q05 Inditex has opened 90 new stores and foresees between 335 and 395 openings throughout FY2005, with and expected CAPEX of between €700 and €800 million.
Resolutions of the Board of Directors
The Board of Directors of Inditex has resolved the appointment of Mr. Pablo Isla Álvarez de Tejeraas member of the Board and Chief Executive Officer, in accordance with the favourable report of the Nomination and Remuneration Committee. Furthermore, the Board of Directors has resolved to exercise the option to acquire the 9.95% of Stradivarius, reaching 100%.