Fast fashion firms continue to be the benchmark by which other retailers are measured. Intidex and H&M’s latest results signal the health of this sector.
Intidex Sales Soar, Continues Expansion Plans
Spanish retailer Intidex posted a net income increase of 10 percent to 3.2 billion euros ($3.4 billion) for fiscal year 2016, ended January 31st.
Gross margin for the company, which operates Zara, reached 57 percent on a gross profit increase of 10 percent to 13.3 billion euros ($14.1 billion). That’s down from a gross margin of 57.8 percent during the previous year, which the company attributes to currency fluctuations.
Net sales increased by 12 percent to 23.3 billion euros ($24.8 billion). Same store sales increased 10 percent compared to an 8.5 percent increase in FY2015.
The company opened 279 stores in 56 markets in 2016, giving the retailer a total of 7,292 stores in 93 markets. And it reported that its focus will be on larger format stores going forward. Online sales for Zara were launched in Singapore and Malaysia. Thailand, Vietnam and India are next.
Net sales at Zara increased by 13 percent to 15.4 billion euros ($16.4 billion).
H&M Sales Increase
H&M today reported first quarter sales results, through February 28th. Sales including VAT totaled 54.37 billion SEK ($6.07 billion), a 7 percent increase over the same period last year. In local currency, sales including VAT rose 4 percent. Excluding VAT sales totaled 46.99 billion SEK ($5.24 billion), an 8 percent increase.
For February, sales increased 3 percent in local currencies and adjusted for calendar fluctuations over February 2016. The one day difference from 2016’s leap year amounted to 4 percentage points.
The retailer operated 4,393 stores compared to 3,970 stores in February 2016.
The company will release full first quarter sales information at the end of the month.