Inditex reports €7.7 billion net sales in the first half of FY13, 6% YoY growth

The Group continues to generate employment, 
creating over 10,000 new jobs to bring the total headcount to 122,579 

Investments of more than €450 million in the commercial and logistics areas have paved the way for the creation of more than 1,500 jobs in Spain. The new platforms in Palafolls and Tordera are already fully operational

Net sales in local currencies rose by 8%, while net profit
amounted to 951 million euros

The Group opened 95 stores during the first six months of this fiscal year, bringing the total across its 86 markets to 6,104

In August Zara launched its online sales in the Russian Federation, Massimo Dutti and Zara Home began to sell online in Canada

20-9-2013 — /EuropaWire/ — Inditex posted net sales of 7.7 billion euros in the first half of FY13 (from 1 February to 31 July), year-on-year growth of 6%; this figure rises to 8% in local currency terms. Like-for-like sales growth was 2%, on top of a 7% in 1H12. The Group’s net profit increased by 1% year-on-year to 951 million euros.

Inditex opened 95 stores in 40 markets during the first six months of the year, bringing the total in its 86 markets across all five continents to 6,104. The most noteworthy store openings included Pull&Bear’s first store in Germany, in Berlin’s busiest shopping district; the first Zara Home stores in Japan, in the cities of Osaka and Yokohama; and the new Zara store on Istiklal street in downtown Istanbul. The growth of the Group’s various concepts across Asia was punctuated by several very important openings during the period, including the Bershka stores opened in Osaka (Japan), Singapore and, most significantly, Shanghai, on 558 Nanjing East Road, one of this major Chinese city’s key shopping streets.

Stores upgrade strategy
In parallel, Zara has refurbished and enlarged some of its key flagship stores around the world in cities such as Tokyo, Berlin, Prague, Stockholm, Beijing and Seoul, including the stores located on Madrid’s Gran Vía, London’s Brompton Road and Paris’s Champs Elysees. This strategy of upgrading, enlarging and rolling out the new store image is scheduled to continue throughout this year with other relevant stores such as the Zara store on 101 Fifth Avenue, New York (located in the famous Flatiron building), on Kalverstraat in Amsterdam (destined to become one of the largest Zara stores in Europe) and the brand’s first ever store in China, on 1193 West Nanjing Road in Shanghai.

As for new store openings slated for 2013, the following stand out for their importance: entry this September by Zara Home into the Swedish market, where it will open a flagship store on Stockholm’s central Birger Jarlsgatan street; the Massimo Dutti establishment planned for Rue de la Paix in Paris; and the debut Zara stores earmarked for the cities of Seattle (US) and Port Elisabeth (South Africa). Zara Home is also planning to open prominent stores in Paris (Champs Elysees) and Barcelona (Paseo de Gracia) before year-end.

Over 10,000 new jobs
Year-to-date, the Group has managed to create 10,111 new jobs, bringing the number of professionals employed across all five continents to 122,579. Investment in Spain of more than 450 million euros related to the so-called ‘headquarter effect’ has paved the way for the generation of more than 1,500 jobs in recent months. This investment policy has resulted in the addition of over 200,000 square metres of sales and logistics floor space designed to underpin the Group’s international growth from Spain.

The Group, through its various formats, is now selling its goods online in 24 markets. Zara’s online sales platform went live in Russia on 28 August, bringing this brand’s e-commerce presence to 22 countries. Also in August, Zara Home and Massimo Dutti inaugurated online sales activity in Canada.

Third-quarter trading update
Store sales in local currency terms increased by 10 % between 1 August and 14 September 2013.