Inditex climbs 4% until third quarter, corrects margin avoiding discounts
The group ends the first nine months of the fiscal year (comprehended between February and October) with a volume of business of 18.43 billion euros, up by 3%.
Inditex improves its magnitudes during the first nine months of the fiscal year. The Spanish group ended this period with a rise of its net profit of 4%, at the same time as it managed to correct the evolution of its gross margin avoiding “to participate in the promotional activity widely seen in the sector since September”.
The group ended the first half-year of fiscal 2018 (between February and October) with a volume of business of 18.43 billion euros, climbing 3% in base to the same period of 2017. The increase of sales in constant currency stood at 7%. The currency weighed sales down during the period by 4.3%.
The gross operating profit of Inditex, on the other hand, stood at 3.07 billion euros, up by 3%. The net profit ascended to 2.43 billion euros, with a rise of 4% in base to the first half-year of 2017.
The gross margin raised at the same rate, of 4%, reaching the figure of 10.69 billion euros, which entails 58% of sales. “Inditex decided not to participate in the promotional activity widely seen in the sector since September. This high operational efficiency is reflected in the positive evolution of the gross margin, which widened 108 basis points over the quarter”, said the company.
Inditex has carried on in its commitment to take Zara to all countries of the world online, a goal announced last September by the group itself. In November, Zara launched online sales in 106 markets and is currently present in 202 countries around the world.
As per the physical channel, Inditex has opened stores in 51 different countries during the first nine months of the fiscal year, ending the period with a total network of 7,442 stores in 96 markets, 62 openings less than at the end of the third quarter of 2017.
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