The Inditex Group had a solid financial performance in the first quarter, opening stores and investing in new logistics facilities.
In a nutshell: Inditex continued to invest in growth through the modernization and renewal of its stores and facilities, framed by social responsibility and environmental criteria.
The Spanish company has set plans to build two new logistics hubs over the coming months, one in the Dutch town of Lelystad and the other in A Laracha in Galicia, Spain. These hubs will complement and support its existing central logistics platforms in Spain. Investment in these new facilities will exceed 150 million euros ($169.18 million).
Inditex said it created 10,668 new jobs over the past 12 months, 2,242 of which were in Spain. In April, the company distributed 42 million euros ($47.37 million) to around 84,000 employees with at least two years’ service as phase two of its employee profit-sharing plan.
All of the company’s brands increased their international presence, expanding their integrated physical and online store platforms. Four new e-commerce markets were added during the quarter, with Zara launching online operations in Thailand, Malaysia, Singapore and Vietnam. In parallel, Inditex continued to expand and refine its presence in its 93 operating markets, ending the period with 7,385 stores. Zara is due to launch online in India during the second half of the year.
The first quarter was marked by a notable number of flagship store openings. In Madrid, Zara opened a four-story unit in the heart of the Azca business and retail district, while Massimo Dutti opened the doors of a two-story establishment in central Moscow that houses the brand’s men’s, women’s and limited-edition collections.
Sales: The Inditex Group posted net sales growth of 14 percent in the first quarter ended April 30 to 5.6 billion euros ($6.32 billion), underpinned by a solid business performance. Sales growth in constant-currency terms was 12.5%.
Profit: Net profit amounted to 654 million euros ($737.61 million), up 18 percent from the first quarter of 2016. Earnings before interest and taxes also increased 18 percent for the year ago quarter to 705 million euros ($795.13 million).