- Prachi Singh |
Continuing with its global expansion strategy, Inditex reported that its first quarter net sales reached 4.4 billion euros (4.9 billion dollars), 17 percent higher than in the first quarter, last year. Store and online sales in local currencies increased by 13 percent. The company’s gross profit reached 2.6 billion euros (2.9 billion dollars), 18 percent higher than last year’s first quarter.
With global online sales launches on track, Zara plans to launch online sales in Taiwan, Hong Kong and Macau in 2015. Inditex opened stores in 27 markets during the first quarter and operated 6,746 stores in 88 markets. Gross margin reached 59.4 percent of sales compared with 58.9 percent. EBITDA came to 22 percent higher than the comparable prior year period and EBIT 25 percent higher.
At its AGM to be held on July 14, 2015, Inditex’s board of directors will propose a FY2014 dividend of 0.52 euros (0.59 dollars) per share, a total of 1,619 million euros (1,839 million dollars). Also, Nils S. Andersen will not stand for re-election as a board member and the board will propose the appointment of José Luis Durán for approval at the AGM.