Inditex will elevate the profit after rising sales … – HOME

Inditex will elevate the profit after rising sales … – HOME

A Zara store in Barcelona / ALBERT GEA (REUTERS)

Inditex, the largest textile group in the world, has increased its sales of 6.6% in the first nine months of its fiscal year, between February and October, to 12.709 million euros. The company led by Pablo Isla has returned to increase their profits after the decline of the first half, although with a very slight rise of 0.8%. In total, the group that owns chains like Zara, Massimo Dutti and Bershka, has won 1,687 million euros.

The results represent a considerable improvement when compared to the half-yearly accounts, since in the first half exercise group reported that their benefits were reduced 2.4%, up from 6% sales nearby. Analysts now expected a profit improvement, which had placed its shares in year highs this week.

Although to a lesser extent, currencies continue to haunt the group as a type constant exchange evolution is stronger: the store and online sales excluding currency changes increased 10.5% in the nine months of fiscal 2014, as noted by the company

The climb. PTO well in recent months, since according to advance the group between November 1 and December 8, already in the fourth fiscal quarter, sales growth (also at constant exchange rates) has been the 14%. It is more than likely now less strong euro is playing in favor of the group, to have a more favoravble change for a company that has over 50% of its stores outside the countries of the single currency.

At quarter end Inditex operated 6,570 stores in 88 markets, compared to 6,249 in just one year ago. The openings have focused on its flagship stores, Zara, although growing in almost all brands of the group. There is a clear exception: Uterqüe. The accessories chain Inditex 88-68 reduces the number of stores in a year.

Among the details offered by the company on the evolution of the business, which announced its result to the National Securities Market Commission Securities, said that “operating expenses have been tightly managed during the period growing by 7%, mainly as a result of new retail space and include all costs of launching new stores.”

Gross margin rose to € 7,491 million, 5% higher than the same period last year, reaching 58.9% of sales. And the operating result (EBITDA) stood at € 2,825 million, 2% higher than the same period of 2013.

The company also emphasizes the opening last November 29 a megastore of Zara, cuadrdaos 3,000 meters in Shanghai. In the first nine months of 2014 Inditex has opened stores in 50 markets. Also, remember that your store launched in October in the Chinese firm Tmall, the largest virtual mall of Asia, owned by online giant Alibaba.