Inditex sees profits of £940 million due to substantial online growth
Spanish retail group Inditex has generated a profit of £940 million (€1.1 billion) in the 2020 financial year, attributed to a substantial increase in online sales.
Online sales at the group, who own brands including Zara, Pull&Bear and Bershka, increased by 77% in local currencies to £5.65 billion (€6.6 billion) in the year between 1 February-31 January 2021.
With lockdowns and social restrictions impacting trading hours (down 25.5% compared to 2019), total net sales online and in-store reached £17.47 billion (€20.4 billion). Overall net sales at the group declined 28% year on year.
Inditex also achieved all of its Sustainability Roadmap Goals for 2020, with outperformance in two main areas: Join Life and renewable energy. The Group has also set ambitious new targets for the year 2023.
During 2020, Inditex opened 29 new stores and launched its online sales platform in 25 new international markets. At the end of the financial year, Inditex had 102 stores in the UK.
Inditex expects total annual capital expenditure during the period 2020-2022 to be around €900 million, with further digital investments of €1 billion over three years as online sales are expected to continue growing at a significant rate.