• Fri. Sep 24th, 2021

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Inditex Achieves A Historic Segundo Trimester In Profit And Sales

BySam Brad

Sep 15, 2021

Record quarter at Inditex. The textile has achieved historical figures in sales, profit and cash generation. In particular, textiles had a turnover of 6,993 million between May and July, 48% more than a year ago, and above the 6,980 million that analysts expected. Earnings, meanwhile, reached 850 million , somewhat below expectations (877 million), although they are still figures never seen before in the company. And finally, liquidity was above 8,000 million at the end of July. | See also the results of its rival H&M.

The president of Inditex, Pablo Isla, has assured that these results are “the result of the commitment of all the people who make up the company to offer the highest creative quality of fashion. Thanks to all of them we are making the most of the advantages of the sustainable strategic transformation in our business model. ”

In the calculation of the semester (from February to July), Inditex registered a net profit of 1,272 million euros compared to the losses of 195 million that were recorded in the same period of the previous year in full confinement. | Everything analysts expected.

In the first half of its fiscal year, sales totaled 11,936 million euros, 49% more than in 2020, and at a constant exchange rate the growth was 53%. The good tone of online sales stands out with a growth of 36% compared to 2020 and 137% if compared to 2019. The online channel will exceed, says the textile, 25% of the total in 2021.

Continuing with the income statement, Ebitda exceeded 3,100 million in the first semester, 109% more, while the gross margin reached a “robust” 57.9% on sales, as a result of the execution of the business model, its flexibility and digital transformation. Cash generation reached 8,023 million euros at the end of the period, above the 6,486 million in 2020 and the 6,730 million in 2019.

At the end of the semester, the group had 6,654 stores, after the opening of 92 new stores in 27 markets around the world. The company, which will pay a dividend of 0.35 euros per share on November 2 , will undertake investments of about 900 million euros per year in the 2020-2022 period. The plan includes a digital investment of 1 billion euros over the three years.

Sportswear and Uterqüe within Massimo Dutti
Within the anticipation and digital transformation strategy, Uterqüe will be integrated into Massimo Dutti over the next year. Thus, the entire range of Uterqüe products will become available on the website and in selected Massimo Dutti stores and will no longer be sold in its own store.

In this way, the company seeks to take full advantage of the penetration and projection that Massimo Dutti has had in international markets such as the US, Canada, Mexico or Turkey for years. “We believe that it will give it more visibility in different markets,” said the president of Inditex, who considered that “it is the right approach and the right strategy to keep moving forward.”

Likewise, Zara Man will present a new line of sportswear that will be available online and in selected stores as of September 30. Zara Athleticz is based on three fundamental ideas: simplicity, comfort and functionality. Their designs are adaptable for the practice of any sport.

Sam Brad

The Great Writer and The Passionate Poet As Well, He Graduated from University Of Florida in Journalism and Brad have around 12 years of experience in news and media section.

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