Inditex sees record sales and profit thanks to online efforts
Spanish fast fashion king Inditex, best known as the company behind popular high street brands like Zara and Massimo Dutti, said that it hit new records over the first half of the year. Record profits and sales are attributable, it claims, to a concerted and on-going effort to boost the company’s online operations. Taking an empire that has 7,422 stores over almost 100 countries digital is no small feat – but based on the numbers Inditex reported last week, it seems to be going well so far.
Inditex’s share price surged last week on the back of strong results – up 6% in 5 days
SOURCE: Yahoo Finance
Inditex said that net sales hit 12 billion Euros in the first half of the year – that’s a year on year rise of 3%. On a like for like basis over the same timeframe, sales rose by 4%. Profit rose by a similar percentage (3%) against the first half of 2017, to hit 1.4 billion Euros. All of these are record numbers, and they paint a compelling picture of the success that Inditex is having when it comes to creating an online network that has similar reach to its offline business, and is integrated with it. At the end of last week, the company reiterated these plans in a statement, saying: “Inditex will offer online sales across all concepts anywhere in the world by 2020.”
Pablo Isla, Inditex’s founder, chairman, and chief executive, commented on the strength of the company’s results: “The strong first half is the result of a solid sales and operating performance, arising from the unique strength of the group’s integrated and sustainable business model.”
Dominion holds Inditex in its Global Trends Luxury Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.