Money Buzz! Europa

Tag: Inditex

  • Inditex at €866 million net profit in the third quarter of 2020

    Inditex at €866 million net profit in the third quarter of 2020

    Inditex reported sales of €14.1 billion in the first nine months of its fiscal 2020 (1 February to 31 October), compared to €19.8 billion the same period in fiscal year 19.

    The third quarter (1 August to 31 October) registered the evident sales improvement shown since March, with sales of €6.1 billion, compared to €7 billion in 3Q19, a year-on-year decline of 14% (10% in constant currencies) after reductions of 31% in 2Q20 and 44% in 1Q20.

    During the third quarter, 5% of the group’s stores remained closed and 88% continued to face significant limitations in terms of space, trading hours or capacity.

    Against that backdrop, sales in local currencies between 1 and 18 October reached the record levels recorded in the same period of 2019.

    In November, as second waves of Covid-19 hit many countries, 21% of Inditex’s stores were forced to close; as of today, 8% remain temporarily closed, with another 10% required to close at the weekend.

    Online sales have remained very strong throughout, registering a growth of 75% in constant currencies in 9M20 and 76% in 3Q20.

    Net profit for the first nine months of 2020 amounted to €671 million. In the third quarter alone, the Group recorded a net profit of €866 million.

  • Inditex generates €734 million net cash in the second quarter

    Inditex generates €734 million net cash in the second quarter

    Inditex Group sales continued to recover during the first half of 2020 (between 1 February and 31 July) to reach €8 billion, but the decline for the half was -37%.

    87% of the group’s stores were closed during the month of May, with business gradually returning to normal since.

    Inditex has currently managed to open 98% of its stores around the world, albeit with limits on capacity and restricted opening hours in specific markets.

    Online sales grew sharply

    Total sales were boosted by very strong online growth, which reached 74% year on year in the first six months of the fiscal year.

    Gross margin remained at 56.2% of sales, compared to 56.8% in 1H19.

    Net cash generation at €734 million

    Inditex generated over €1 billion of EBITDA and increased its net cash position by €734 million during the second quarter.

    EBITDA for the first half of the year hit €1.5 billion and net financial position at the end of the first half amounted to €6.5 billion, despite the adverse impact from the Covid-19 pandemic.

    Back to profitability in the second quarter

    The above factors combined to drive a return to net profit in the second quarter to €214 million leaving behind the 1Q net loss.

    First half net loss was €195 million.

  • Inditex: new records for revenues, profits and cash în H1 2019

    Inditex posted record levels of net sales, profits and cash for a first half. Net sales topped €12.82 billion for the first time, year-on-year growth of 7%. Net profit hit a new milestone of €1.55 billion, up 10% year-on-year and net cash increased by 13% to €6.73 billion, the highest level ever.

    Inditex net sales increased by 7% in the first half of 2019 (1 February – 31 July), topping €12.82 billion for the first time. In local currencies, sales growth was 7%.

    The solid business performance drove first-half net profit to €1.55 billion, reflecting year-on-year growth of 10% (1H18: €1.41 billion). This figure includes the impact of the new lease accounting standard, IFRS 16, without which profit growth would have been 7%.

    The group maintained its strong cash generation: the net cash position increased by 13% to a record €6.73 billion.

    Inditex’s Executive Chairman, Pablo Isla, underscored the „strong first half performance reflected in these figures, with like-for-like growth across all brands and geographies. The investments we have made in the stores as well as in logistics and technology have been key elements in the development of our customer focused integrated online and offline store platform”.

    Stores and online sales in local currencies increased 8% between 1st August and 8th September. Management estimates a sales growth of 4%-6% in FY2019.

    Highlights for the first half of the year

    During the first half of 2019, zara.com introduced its online platform in Brazil, the United Arab Emirates, Lebanon, Egypt, Morocco, Indonesia, Serbia and Israel. In August, Zara inaugurated its online platform in Qatar, Kuwait, Jordan, Bahrain and Oman.

    It is also due to launch the platform in South Africa (18 September), the Ukraine, Colombia and the Philippines during the third quarter.

    In all, at the July close, the group had 7.420 stores in 96 markets and the integrated online platform was available in 62 of those. The online stores of Zara, Zara Home, Massimo Dutti, Pull&Bear, Stradivarius, Oysho and Uterqüe are also available in an additional 106 markets without physical stores, with Bershka scheduled to follow suit this September.

    This digitally-driven investment plan is being complemented by the constant upgrading and modernisation of the group’s logistics facilities. The construction work on the new digital production building to provide photography for zara.com in Arteixo (La Coruña, Spain) continues to make good progress and work has also begun on expanding the group’s technological and data processing capacity in A Laracha (La Coruña, Spain).

    Meanwhile, the construction and commissioning work at the logistics connection hub in Lelystad (Netherlands) remains on track. The new platform has successfully completed the tests performed in recent months and will be partially commissioned during the second half, ahead of schedule; it will be fully operational in 2020.

    New Zara stores in iconic flagship locations

    Zara opened stores in Hudson Yards (New York, US), Cannes (France), the Time World Mall (Dajeon, Korea), Rome (Italy), Warsaw (Poland) – as Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Zara Home.

    More recently, Zara has inaugurated a new store in Pamplona (Spain) in an emblematic building which the brand has brought back to life for the city.

    Tomorrow (12 September), Zara will open its expanded store in Dubai Mall, the largest single-storey Zara store in the world, with a floor space of over 5,000 square metres that will house the full women’s, men’s and kids collections.

    Also tomorrow, the expanded Zara store on calle Preciados, one of the busiest shopping streets in Madrid, will reopen. The store has a floor space of over 4,000 square metres over six floors, in which Zara will unveil its latest image and newest customer experience-enhancing technology.

  • Inditex net sales rise 3%, topping €26 billion for the first time

    Inditex Group’s net sales rose by 3% in FY18 (1 February 2018 – 31 January 2019) to an all-time high of €26.14 billion, underpinned by growth in all of the Group’s geographic regions. 

    Revenue from online sales increased by 27% to €3.2 billion, accounting for 14% of sales in markets with stores and online net profit rose 2% to €3.44 billion, or 12% in local currencies, while EBITDA and EBIT reached all-time highs, supported by strong margins.

    Net profit rose 2% to €3.44 billion, or 12% in local currencies.

    The Board of Directors will propose a new dividend policy at the next AGM, to be held in July. The ordinary dividend will increase to represent a payout ratio of 60% – up from 50% at present – and Inditex will also distribute a bonus dividend totalling €1 per share, split across 2019, 2020 and 2021.

    The change in policy translates to a 17% increase in the dividend for the year to €0.88 per share; €0.66 as an ordinary dividend and €0.22 as a bonus dividend.