by Apparel Resources News-Desk
14-March-2019 | 2 mins read
The leading fashion brand ZARA owner Inditex Group’s net sales rose by 3 per cent in FY18 to 26.14 billion euros (US $ 29.53 billion), underpinned by growth in all of the group’s geographic regions while sales in local currencies witnessed a surge of 7 per cent.
According to the group, like for like sales were up by 4 per cent and were positive across all regions and brands as well as in both online and stores platforms. The revenues from online sales also rose by 27 per cent to 3.2 billion euros (US $ 3.6 billion).
It is worth noting that Inditex’s margins also remained strong which was supported by the strategic investments in store and online integration. In addition to this, gross profit also increased by 4 per cent to 14.8 billion euros (US $ 16.7 billion) upholding a basis point increase in gross margin to 56.7 per cent.
“Our investments in both logistics and stores in order to leverage the integrated platform, as well as our continued focus on prime locations, has enabled Inditex to offer customers a consistent and appealing proposition globally, across all our brands and channels.” – Pablo Isla, CEO and Chairman, Inditex
The company stated that the store sales in local currencies increased by 7 percent from February 1 to March 9, 2019. The management estimates that like for like sales to grow by 4 per cent to 6 per cent in FY19. Moreover it has also proposed a total dividend of 0.88 euros for that year ended, up by 17 per cent from a year earlier.