- Prachi Singh |
Inditex Group’s net sales rose by 3 percent in the first three quarters of fiscal 2018 to October 31 to 18.4 billion euros. In local currencies, the company said, sales growth was 7 percent, while like-for-like sales growth was positive in all geographies. Gross margin was 4 percent higher and reached 58 percent (56 bps and growth in EBIT was 3 percent or 14 percent in local currencies, while net profit reached 2.4 billion euros, up 4 percent year-on-year. The company added that consistent strong execution enabled Inditex to maintain an EBIT margin of 16.7 percent in spite of a negative 4.3 percent currency impact on net sales.
Commenting on the nine month results, Inditex’s Chairman and CEO, Pablo Isla, said in a statement: “The group’s strong business model, which continues to deliver solid structural growth in all markets, along with our constant focus on developing the integrated store and online platform through continued enhancement of technology and systems.”
Highlights of Inditex’s performance
Inditex said, following the launch of its global online sales platform in November in 106 new markets, Zara’s collections can now be purchased online in 202 markets. Like-for-like sales in the second half of 2018 to the end of November grew 3 percent, following a good start to the season, an extraordinarily warm September and 5 percent like-for-like sales growth in October/November. Inditex has maintained previous guidance for like-for-like sales and gross margin in second half of 2018.
During the first nine months of the year the Group opened stores in 51 markets and continued to add the latest technology to enhance eco-efficiency and customer service in both new and refurbished stores. Alongside the upgrade of its website and app, Zara installed seven new automated online order pick-up points in Milan (Italy), Bilbao (Spain), Amsterdam (Netherlands), Glasgow (UK), Liverpool (UK), Leicester (UK) and the newly refurbished Zara Haussmann store in Paris (France), which reopens tomorrow.