- Prachi Singh |
Inditex Group revenue rose by 17 percent in the first half of 2015 from February 1 to July 31, 2015 to 9.42 billion euros (10.6 billion dollars), driven by growth across all its geographical markets.
First half net profit stood at 1.16 billion euros (1.30 billion dollars), marking growth of 26 percent year-on-year. Like-for-like sales growth was 7 percent, on top of the 4.5 percent growth in the first half of 2014.
Growth led by retail expansion across regions
All of the Group's formats expanded their geographic reach, adding 94 new stores in the first half across 35 markets to bring the total count to 6,777. The Zara and Zara Home brands accounted for the highest number of new openings, with 24 and 25 respectively. All of the geographical regions saw new store openings over the first half.
Store openings in the latest quarter included the Zara stores in Brussels, Amsterdam and Vladivostok in Russia; as well as the Pull&Bear store in Switzerland, the brand's maiden store in this market; and the new Massimo Dutti in Baden-Baden. Zara Home opened new stores in central locations in two important capital cities: Berlin and Geneva, the latter marking the home fashion brand’s foray into the Swiss market.
Meanwhile, Oysho stepped up its presence in Barcelona with a new three-storey flagship store. Also during the second quarter, Zara completed store extensions and refurbishments to introduce the latest store image at stores in highly-strategic locations such as Hamburg, London and Mexico City. It also refurbished existing Massimo Dutti flagship stores to introduce the new store image in cities such as Paris and Zurich. The various formats also opened stores along high streets and shopping centres in Sydney, Mexico City, Bucharest, Marseilles, Moscow and Hong Kong.
The Group also currently sells its products online in 28 markets. In September, Zara.com went live in Hong Kong, Macau and Taiwan, while Oysho, Massimo Dutti, Stradivarius and Pull&Bear all launched their online sales platforms in China.
Trading update and dividend
Store and online sales in local currencies have increased by 16 percent from August 1 to September 10, 2015. The Group also continued to create employment at a healthy pace during the first six months of the year.
The company will pay a final ordinary and bonus dividend totalling 0.26 euro (0.29 dollar) per share (before tax) on November 3, 2015, thereby completing the 0.52 euro (0.59 dollar) per share dividend declared against 2014 earnings.