Inditex H1 net profit up 9 percent, touches 1.37 bn euros

Inditex Group said that revenue rose by 11.5 percent in the first half of 2017 to 11.7 billion euros (14 billion dollars), underpinned by growth across all markets and brands. First-half net profit amounted to 1.37 billion dollars, a year-on-year growth of 9 percent, while like-for-like sales growth was 6 percent. The company added that between August 1 and September 17, 2017, sales in local currencies in stores and online have increased 12 percent. The company will pay a final ordinary and bonus dividend of 0.34 euro (0.41 dollars) per share, completing the 0.68 euros (0.82 dollar) per share dividend declared against 2016 earnings.

Commenting on the group’s performance, Inditex´s Chairman and CEO, Pablo Isla, said in a statement, "Strength and sustainability of the company´s integrated offline-online store model, which year after year continues to demonstrate its ability to deliver growth, while emphasising the creation of value for society and the environment, as evidenced by the notable creation of jobs, particularly in Spain, thanks to the headquarters effect".

Retail expansion and job creation continues at Inditex

The group also continued to generate jobs and created 11,043 new positions in the last 12 months. Of these, 2,933 jobs are located in Spain, resulting from growing teams at the headquarters.

All of the group’s brands expanded their international footprint, adding stores in 35 countries, so the group’s global store count rose to 7,405, 113 more than at the start of the year. Following the introduction of seven of the group’s retail concepts in Belarus in August, and with the www.zara.com platform scheduled to launch in India on October 4, the group now operates in 94 markets, 46 of which have an online presence.

The company said, in June, work began on the construction of a new logistics centre in A Laracha (Galicia, Spain), and in September construction started on the logistics hub planned for Lelystad (Netherlands), which will complement and support the existing central logistics platforms in Spain. The group continued to roll out its used clothing collection programme in collaboration with a number of international NGOs in 532 stores in seven countries including Spain, Portugal, the UK, Ireland, Netherlands, Denmark and China. The company aims to implement the scheme in another 25 countries including Sweden (one store in Stockholm) and Austria (one store in Vienna).

During the first six months of the year, all of the Inditex´s brands moved forward with the group strategy of expanding, perfecting and refreshing the integrated offline-online store model. Zara opened flagship stores in Mumbai (India) during the second quarter, Castellana 79, located in one of Madrid’s (Spain) busiest shopping hubs and Silk Way shopping centre in Astana (Kazakhstan). Pull&Bear, meanwhile, opened its first flagship store in Paris (France) in May, on Rue de Rivoli and Bershka relocated its central Paris flagship store to Rue de Rivoli.

In June, all the group’s brands (Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe) opened stores in the Puerto Cancún shopping centre in Quintana Roo (Mexico).

Picture:Massimo Dutti website