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The global fashion business journal

Nov 18, 201910:02pm

Inditex grows by 3% in 2018 but contains gross margin fall

Zara’s owner group registers a worse evolution than previous years but manages to rise its margin by four tenths.

Mar 13, 2019 — 9:00am
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Inditex grows by 3% in 2018 but confronts the fall in margin

 

 

Inditex slows down in fiscal year 2018. The Spanish group chaired by Pablo Isla closed the last fiscal year, ended on January 31, with a rise of 3.2% in its revenue, while its net result was increased by 2.3%. Although these results are far from those of previous years, the company managed to face the fall of the gross margin, which grew by four tenths.

 

At the end of the last fiscal year, the sales of Zara’s owner group stood at 26.14 billion euros. According to the company, at constant exchange rates the growth rate was 7%. Comparable sales rose by 4% in 2018, compared to a 5% increase in 2017. On the other hand, online sales boosted by 27%, to 3.2 billion euros. The net income at the close of the last fiscal year was of 3.44 billion euros. Meanwhile, the ebitda increased by 3%, to 5.45 billion euros.

 

 

 

 

The variable that recorded a better performance in 2018 is the gross margin, which rose to 14.81 billion euros, that is, 56.7% of the sales. After the continued downward trend since 2012, the rate increased by four tenths in 2018.

 

At the close of fiscal year 2018, the group had 7,490 stores of all its concepts, which amount to 4.96 million square meters, 5% more than the previous year. That year the company carried out 370 openings, 355 closings and 226 refurbishing that included 112 expansions of the facilities.

 

By markets, Europe still takes the bulk of the group’s sales and, in fact, it has increased its weight, going from 44.9% in 2017 to 45.1% in 2018. Asia’s trend remains flat, with 23.2%; Spain has 16.2% (one tenth less); and America, 15.5% (one tenth less than the previous year too).

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