Inditex posts nine-month net sales up 7.5% to €19.8 billion
Zara's parent Inditex has revealed a 7.5% increase in net sales to €19.8 billion in the nine months to 31 October while net profit increased by 12% to €2.72 billion.
Pablo Isla, CEO at the parent of Zara, Massimo Dutti and Pull & Bear among others, said it success was down to its "integrated stores and online model, thanks to our focus on the highest-quality locations, store environments, products and customer experience both in stores and online. Crucially, this is coupled with strategic investments in technology and sustainability.”
The company highlighted an "especially remarkable" increase in the gross margin to 58.2% of sales, and the strong net cash position, up +17% to reach €7.7 billion, underpinned by strong operating performance.
During the period the group extended its store and online platforms with Zara extending its online operations to South Africa, Ukraine, Philippines and Colombia. In addition both Massimo Dutti’s and Zara Home’s online platform went live in the United Arab Emirates, Saudi Arabia, Lebanon and Morocco; while Stradivarius, Oysho and Uterqüe launched their online platforms in the United States.
All of the group’s brands are now operating worldwide online stores, which reach more than 200 markets across the globe, it said.
Its new for&from fascia also made its first venture outside of Spain into Como in Italy. for&from is a not-for-profit venture staffed by people with mental or physical disabilities and sells past-season items at a discount with all profits invested back into projects for disabled people.
The group's management estimates like-for-like sales growth of 4% - 6% for the full year in 2019.