Inditex profit growing faster than sales
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Zara parent Inditex profit grew by 12 percent in the first nine months of this year, a rate significantly ahead of sales growth.
Sales across its brands, which also include Massimo Dutti, Stradavarius, Bershka and Zara Home, rose 7.5 percent to €19.8 billion. The company says it expects its full-year like-for-like sales to increase by between 4 percent and 6 percent.
The Spanish-headquartered company said its success is due to a focus on “enriching its customers’ unique experience” with inventory management and “tight coordination of every step in the value chain: design, production, logistics, and distribution”.
During the first half of this year, sales reached €12.8 billion, the highest level to date, and net profit set a new record of €1.6 billion, up 10 percent year on year.
Questions & Answers
Q.What was Inditex's total sales figure for the first nine months of this year?
What was Inditex's total sales figure for the first nine months of this year?
Inditex's sales across its brands, including Zara and Massimo Dutti, reached €19.8 billion. This represents a 7.5 percent increase over the period. The company also reported record first-half sales of €12.8 billion.
Q.Which specific factors does Inditex attribute its current success to?
Which specific factors does Inditex attribute its current success to?
The company credits its success to an emphasis on enhancing customer experience through effective inventory management. It also highlights tight coordination across its entire value chain, encompassing design, production, logistics, and distribution processes.
Q.What is Inditex's sales growth forecast for the full financial year?
What is Inditex's sales growth forecast for the full financial year?
Inditex anticipates its like-for-like sales for the full year to increase by between 4 percent and 6 percent. This projection follows a significant profit growth of 12 percent in the first nine months.
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